SE ‘Forests of Ukraine’ will become a joint-stock company

Recently, Viktor Smal, head of the State Agency of Forest Resources of Ukraine, signed an order that marked an important step in reforming the country's forestry sector. According to this order, the State-Owned Enterprise "Forests of Ukraine" will be transformed into a joint-stock company. This step is considered fundamental to the agency's activities and is aimed at optimizing and improving the efficiency of forest resource management.

The corporatization of SOE "Forests of Ukraine" is planned as part of the Government's Action Plan for 2025. This plan includes a series of reforms aimed at strengthening the country's economic development and improving management standards across various sectors, including forestry. Transforming the forestry enterprise into a joint-stock company opens up new opportunities for attracting investments and boosting economic growth.

The reform is part of Ukraine's commitments to European partners under the Ukraine Facility framework. This project is designed to support economic development and strengthen partnerships between Ukraine and the European Union. Aligning forest resource management with EU corporate standards will enable Ukraine to create a transparent model of governance that is understandable to international investors, which, in turn, could lead to attracting new investments and expanding opportunities in the sector.

In addition to harmonization, corporatization allows for the introduction of more transparent and clear management rules, which is particularly important in the context of combating corruption and addressing other economic challenges facing the country. This approach will enable Ukraine to manage its forest resources more effectively, ensuring maximum possible revenue for the state while prioritizing environmental well-being.

The reform of the forestry sector began three years ago, and the current actions represent the final stage of this process. During this period, significant work has been done to improve forest management technologies, enhance the organizational structure of enterprises, and increase the qualifications of industry workers. The government is now focused on ensuring the successful completion of the reform and the implementation of all its aspects.

To facilitate the transformation of SOE "Forests of Ukraine" into a joint-stock company, a special commission for transformation and inventory has been established. The commission will conduct a full audit of the enterprise, which will help identify all its assets and liabilities, as well as assess their real value. This approach will ensure transparency during the transition to the new management structure and help avoid risks associated with potential resource loss or financial manipulations.