Officials at the State Enterprise “Forests of Ukraine” sold timber at below-market prices: losses total nearly 7 million hryvnias

Law enforcement officials have 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.

The scheme was uncovered by operatives from the National Police’s Strategic Investigations Department in Volyn Oblast, in collaboration with the State Bureau of Investigation (DBR), the Security Service of Ukraine (SBU), and environmental prosecutors. The Specialized Environmental Prosecutor’s Office of the Prosecutor General’s Office is overseeing the proceedings.

How the scheme worked

According to the investigation, in August 2024, two timber-processing export companies won auctions for the sale of unprocessed timber, after which contracts were signed with them valid through December 31, 2024.

In late December, the then-heads of the forestry enterprises signed supplementary agreements and extended the supply of products until January 31, 2025. As a result, in 2025, timber continued to be shipped at the 2024 auction prices, even though auction prices in the first quarter of 2025 were significantly higher.

In total, 4,000 cubic meters of unprocessed timber were sold to exporting companies at below-market prices, resulting in losses of 6.9 million hryvnias.

Searches and Notifications of Suspicion

On October 7, law enforcement officials conducted 12 searches at the residences and registered addresses of the individuals involved:

• All 12 individuals were notified of suspicion under Part 2 of Article 28 and Part 2 of Article 364 of the Criminal Code of Ukraine (abuse of official position committed by a group of persons acting in concert, resulting in serious consequences);

• among those implicated are the head and a specialist of a department at one of the forestry offices, as well as 10 former heads of subordinate forestry enterprises (forest districts) in the Rivne and Volyn regions, eight of whom currently hold other positions;

• Four suspects have been detained in accordance with due process; the issue of imposing pretrial measures on the suspects is currently being decided.

In accordance with Article 62 of the Constitution of Ukraine, a person is presumed innocent of a crime and may not be subjected to criminal punishment until their guilt has been proven in accordance with the law and established by a court conviction.

This was reported with reference to the press service of the National Police of Ukraine.

“Forests of Ukraine” has appointed an interim director.

Read also: “Forests of Ukraine” is resuming construction of 25 forest roads across five branches.