Ukraine’s forestry industry is booming — with state-owned Forests of Ukraine reporting net profits of UAH 6.9 billion (US$167 million) last year, a 2.76-fold increase on 2024. That is according to State Forest Agency chief Viktor Smal, who presented the figures during his annual public report on Sunday.
Revenue from timber sales climbed to UAH 30.4 billion ($736 million), up UAH 6.7 billion year-on-year, while tax payments hit a record UAH 16.1 billion ($390 million) — up UAH 6.8 billion on 2024. Industry profitability reached 22.8 per cent, up 12.3 percentage points, with average monthly wages clearing UAH 30,000 — roughly $727 — after rising UAH 6,000 year-on-year.
Post-2020 reforms have driven the turnaround. Before those changes — when resources were greater and conditions far less punishing — the industry earned just UAH 0.2 billion, nearly 35 times less than today’s result. “This is the best proof that the reforms we implemented have proven effective,” Smal said.
Yuriy Bolokhovets, director general of Forests of Ukraine, said less money was disappearing off the books. Moving 97 per cent of procurement onto the Prozorro transparency platform saved more than UAH 700 million alone.
“Before the reforms, profits were lost. Today, financial flows work in the interests of the state and the industry,” Bolokhovets said.
“Increased profits mean record budget contributions, forest fire protection, support for the armed forces, and investment in technical modernisation.”
It comes amid ongoing uncertainty over Ukraine’s timber export position, with European markets closely watching supply flows as the war continues to constrain accessible forestry areas across the country’s east and north.
