Indictments in the timber fraud case have been filed with the court

For years, employees of state-owned enterprises tampered with the electronic timber tracking system, concealed sales, and underreported the value of forest products. According to the investigation, from 2021 through September 2024, more than 10,000 instances of illegal tampering with the system were documented. After the scheme was uncovered, official timber harvesting and exchange sales figures rose to over 70% of planned volumes.

According to the investigation, employees of the state-owned enterprise “Forests of Ukraine” and the state-owned enterprise “Forestry Innovation and Analytical Center” altered and deleted data in the electronic timber accounting system in exchange for monetary compensation.

Specifically, they were able to pass off expensive timber as cheaper, conceal information about its sales and warehouse inventory, and alter details regarding the transportation of forest products.

Between 2021 and September 2024, law enforcement documented more than 10,000 instances of illegal tampering with the electronic system.

The investigation established that the criminal organization was created by a former employee of the State Enterprise “Forestry Innovation and Analytical Center” (LIAC), who had participated in the development of the electronic timber accounting system.

According to the investigation, the organization consisted of one LIAC employee and four employees of the state-owned enterprise “Forests of Ukraine.” Seven other individuals facilitated the illegal scheme.

Thus, law enforcement identified 12 individuals who, according to the investigation, were involved in the organization’s activities and its support.

Between February and October 2026, prosecutors from the Specialized Environmental Prosecutor’s Office of the Office of the Prosecutor General filed indictments against 13 individuals.

Depending on the role of each individual, they are charged with:

• forming a criminal organization and participating in it;
• unauthorized alteration or destruction of information in a computerized system;
• providing and receiving unlawful benefits.

The criminal offenses are classified under Articles 255, 362, and 354 of the Criminal Code of Ukraine.

After the illegal activities were halted, law enforcement officials noted a reduction in the black-market trade in timber. They also strengthened the security of the electronic accounting system.

According to the data provided, the figures for official timber harvesting and exchange sales have risen to over 70% of the planned volumes.

At the same time, the case is currently in the judicial phase. In accordance with Article 62 of the Constitution of Ukraine, a person is presumed innocent until proven guilty by a court verdict.

This was reported by the Office of the Prosecutor General.

Previously, law enforcement officials exposed current and former officials of the forestry office of the state-owned enterprise “Forests of Ukraine” who were selling unprocessed timber to export companies at below-market prices. As a result of these actions, the state-owned enterprise suffered losses totaling 6.9 million hryvnias.

In Bukovina, six participants in the organized scheme were notified of new charges. Among them are four forestry industry employees and two drivers.