Tens of Millions of Hryvnias Could Have Been Siphoned Through Fictitious Schemes at the “Capital Forestry Office” of SE “Forests of Ukraine”

Officials of the state enterprise “Forests of Ukraine” officially receive quite high salaries — yet, as the materials of the pre-trial investigation show, this does not rule out their possible participation in corruption schemes. The Telegraph editorial team has reviewed documents relating to the “Capital Forestry Office” branch and several companies connected with it. According to investigators from the National Police, tens of millions of hryvnias may have been siphoned from the state enterprise through fictitious contracts and controlled firms.

The State Audit Service records a widespread practice whereby forest enterprises lease their own equipment at minimal rates to so-called “friendly” private structures.

“Forest enterprises lease their equipment for pennies to ‘friendly’ private companies that carry out logging operations,” the agency notes.

The typical scheme works as follows: logging operations are formally assigned to private companies or individual entrepreneurs, while in reality the work is performed by local residents for cash or by regular employees of the state enterprise.

Fictitious Contracts and Luxury Vehicles

Investigators documented a scheme at the “Capital Forestry Office” branch under which state funds allocated for logging were allegedly converted into cash and expensive assets. The central role in the scheme, according to the investigation, belongs to the company “Global-Trans-Bud.” Its director, Vitalii Nevmerzhytskyi, is regarded as the main organizer of the scheme on the business side.

Funds from the accounts of “Global-Trans-Bud” were reportedly transferred to the accounts of individual entrepreneurs as well as the companies “Unilis LTD,” “Technolis LTD,” “Lis-Prom-Torh,” “Vadist,” and “Chubynetske.” All of them operate in the logging sector and have received tens and hundreds of millions of hryvnias from state tenders in recent years.

According to the investigation, Yevhenii Bulhachenko, director of LLC “Chubynetske,” may have personally negotiated with forestry officials to sign certificates of completed work for services that were never actually provided. The funds were then siphoned through shell companies and nominee individual entrepreneurs. During investigative actions, law enforcement seized a Range Rover Velar registered in the name of Nevmerzhytskyi’s wife; prosecutors are seeking to have the vehicle arrested as possible material evidence.

Branch Director, His Family and Assets

The key figure on the state enterprise side in the case files is Serhii Zaiets, director of the “Capital Forestry Office.” According to investigators, he may have coordinated the scheme from within. Law enforcement believe that more than ten participants conducted controlled tenders, pre-determining the winners, while the contractors who supposedly performed the work did not actually carry it out: the timber was harvested by the forestry staff themselves using departmental equipment and fuel.

Serhii Zaiets has many years of experience in state forestry structures, from the position of marker to head of forestry enterprises. His official income for the past year amounted to approximately 6 million hryvnias, or about 500 thousand hryvnias per month.

However, circumstances that have drawn investigators’ attention go beyond the declared assets. The official’s wife founded LLC “ZLS-777,” to which a 2025 Skoda Kodiaq worth around 50 thousand dollars was subsequently registered. In addition, she is registered as an individual entrepreneur in the field of freight transportation and owns several trucks — vehicles that could theoretically be used for hauling timber.