Despite the devastating military operations in the east and south of the country, Ukraine is increasing timber production. The country is building new forest roads and combating corruption. The Ukrainian government is striving to support timber processors who are trying to avert the threat of bankruptcy.

The management of the state forest management company “Forests of Ukraine” recently announced that in January, it will sell up to 1 million cubic metres of timber at an auction in the Netherlands.

Representatives of “Forests of Ukraine” emphasise that uncertainty regarding national borders (due to blockades), as well as the winter holiday period in European countries, have reduced the demand for timber. Many processors had temporarily halted production; now demand is gradually recovering, though the situation remains difficult in some market segments.

Improvement of the situation is further hampered by border blockades. As a result, more than 50% of processors have left the timber market. Ukraine's access to international markets is severely hindered. It has been estimated in Ukraine that in December 2023 alone, the embargo on forestry exports caused losses amounting to 1 billion hryvnias (or 25 million US dollars).

The management of “Forests of Ukraine” reports that a timely implemented reform in the forestry sector has saved the situation. Had it not been implemented, dozens of forestry enterprises would have been on the verge of bankruptcy as early as January.

Thanks to subsidies from the centre, all employees in the Ukrainian forestry sector receive their salaries on time, all branches of the state company have working capital to conduct operations, and no branch has ceased work.

Given the difficult situation in the timber market, President V. Zelenskyy's government will continue to cut costs, increase efficiency, and eradicate corruption. This means mandatory evaluation and justification of investments, as transparent and competitive procurement as possible, and the efficient use of equipment and other resources.

The process of improving the situation in the Ukrainian forestry sector also includes demining and related measures. In October 2023, Wood Central reported that to neutralise dozens of mines in forests, fields, and on roads every month, Ukraine is cooperating with the USA and the European Union.