Business news from Ukraine

Business news from Ukraine

Ukraine starts reform of state forestry industry

8 September , 2022  

Ukraine is starting a reform of the state forestry industry, in which all 158 forestry enterprises of the country are merged into a single state specialized enterprise “Forests of Ukraine”, and the current 24 regional administrations will be enlarged to nine regional forestry and hunting departments.
As Yury Bolohovets, head of the State Forest Resources Agency of Ukraine, wrote on Facebook, the creation of a single company is fully consistent with European practice – the experience of the Baltic countries, Poland and other countries. Also, a single company achieves better economic results, attracts investments more efficiently and introduces new technologies with more transparent and standardized business processes.
“In the future, the structure of the “Forests of Ukraine” should consist of three levels: local branches, regional offices, central office. The new enterprise will focus on planning, coordination and quality control of work. External contractors will be involved to perform work on a competitive basis,” the head wrote. State forest agencies in the social network.
Bolohovets stressed that as part of the reform, consolidation will take place – instead of 24 regional departments of the State Forest Agency, nine regional departments of forestry and hunting will be formed, which will be formed in accordance with forest growing zones, the number of forest users in the region and the forest area.
According to him, the creation of an enterprise to manage all state forestry enterprises is provided for by the State Forest Management Strategy of Ukraine until 2035. In addition, a single company with centralized management is more manageable both during martial law and during the post-war recovery of the country’s economy.
“Thus, in Ukraine, as in most European countries, a model is being formed with two independent verticals of forest management. SE “Forests of Ukraine” governs, the regional departments of the agency implement state policy and control the activities of forest users – both state and all others. The central office The State Forest Agency coordinates the interaction of both verticals of management, because when transforming the system, it is very important to maintain its manageability,” the head of the agency explained.
To carry out the reform, a special Reorganization Commission under the State Forest Agency is currently being created, this stage of reformatting will be completed by the end of 2022.
“I would like to draw your attention to the fact that neither the State Enterprise “Forests of Ukraine” nor the state joint-stock company, which is planned to be created in the future, can be objects of privatization! Centralization of management does not mean the creation of a monopoly or a monopoly. “, – said Bolohovets in the message.
One of the conditions of the reform is also the preservation of jobs in the industry and the volume of tax revenues to local budgets. At the same time, a certain optimization process will take place – some managers from the local level will be able to move to regional offices.