The State Enterprise "Forests of Ukraine" sold 2.39 million cubic meters of timber at the auction in the fourth quarter of 2024. By the end of the quarter, it shipped 2.24 million cubic meters of timber, achieving a contract fulfillment rate of 94%, reported the General Director of the state enterprise, Yuriy Bolokhovets, on Facebook.
"The Ukrainian Energy Exchange (UEB) reported a contract fulfillment level of 90%. In reality, this figure is even higher. If a buyer refuses the contracted product, we put the resource back up for auction. Therefore, the actual sales percentage from the State Enterprise "Forests of Ukraine" exceeds 94%," he clarified.
Bolokhovets also noted, referencing data from the exchange, that the fulfillment rate for municipal forestry enterprises is 75%, while for other timber users it stands at 41%.
He reminded that in 2023, the contract fulfillment rate for the State Enterprise "Forests of Ukraine" was below 90%.
According to his information, out of 150,000 cubic meters of unsold volume, 80,000 cubic meters consist of military supplies. Previously, the military primarily chose less sought-after small-diameter round timber (15–19 cm, 20–24 cm) for covering bunkers, but recently, they have been actively ordering larger diameter products (30–34 cm, 35–39 cm) intended for the production of lumber for trench construction. The military orders are given top priority, the CEO explained.
He also noted that harvesters are working under conditions of staff shortages, with teams not being reserved, and workers being mobilized, sometimes en masse. Consequently, contractors may not always be able to provide the required harvesting volume on time for objective reasons. Additionally, sanitary logging may not pass the approval process for various reasons.
"Our regional branches have been tasked with minimizing negative consequences for buyers in such cases. A 'hotline' is operational at the central office level: a solution that satisfies the client must be found for every problematic situation," the general director summarized.
As reported, Ukraine began a forestry reform in 2016. Within its framework, the sale of unprocessed timber at electronic auctions has already been implemented. Since 2021, an interactive map showing the locations of wood processing facilities has been operating in test mode in several regions.
The industry has introduced the "Forest in a Smartphone" project, which contains a list of logging tickets for timber harvesting and allows users to verify the legality of logging activities on the agency's online map.
Since June 1, 2023, Ukraine launched a pilot electronic issuance of logging tickets and certificates of origin for timber. Additionally, the State Enterprise "Forests of Ukraine" has initiated a pilot project for procuring timber harvesting services through the electronic platform Prozorro.