In Yaremche, in the Carpathian region, government officials, members of parliament, regional and local authority leaders, as well as representatives from the business and forestry sectors, discussed further reforms to the forestry sector and the corporatisation of the state-owned enterprise ‘Forests of Ukraine’.
The discussion was joined by Viktor Mykyta, Deputy Head of the Office of the President of Ukraine, and Taras Vysotskyi, Minister of Agrarian Policy and Food of Ukraine.
One of the key topics was strengthening the financial capacity of local authorities within whose territories forests are located. In particular, the possibility of increasing the land tax rate for forest users from 0.1 % to 0.25 % was discussed. It was also proposed to review the distribution of rent payments and to channel part of the funds, which currently go to the State Forest Resources Agency’s special fund, directly to the communities.
Separately, participants in the hearings raised legislative issues that create additional difficulties for local authorities. In particular, this concerns the liability of communities for the illegal felling of trees in cases where the offender has not actually been identified. One of the proposals is to suspend this provision for at least three years and make the necessary amendments to the legislation.
Another key area of focus was transparency and oversight of decision implementation. Participants proposed introducing regular monitoring of the implementation of agreements – with quarterly analysis of the specific results achieved by local authorities, the State Forest Resources Agency and other stakeholders, and a return to joint discussions every six months.
The transformation of the State Enterprise ‘Forests of Ukraine’ was also discussed during the hearings. One of the most pressing issues remains the registration of property rights to land and the formalisation of the enterprise’s assets. It is important that the land used by the State Enterprise ‘Forests of Ukraine’ remains in state ownership. Legislative amendments are also being drafted to ensure that 100 per cent of the enterprise’s shares remain state-owned.
For the business sector, the key issue remains increasing the volume of timber harvesting and fulfilling contracts for the supply of timber. The State Enterprise ‘Forests of Ukraine’ plans to increase the proportion of harvesting carried out by its own teams. At the same time, controls over the shipment of forest products are being tightened to ensure full traceability of timber and minimise opportunities for abuse.
Another priority is supplying the general public and the public sector with firewood. It is planned that, from 2027, separate lots will be established for the needs of housing and communal services and heating, so as not to compete in the same market with other sectors.
European integration and the implementation of European rules and standards in Ukraine remain strategic priorities for the forestry sector. Participants in the hearings emphasised that reforming the forestry sector is a long-term process, the results of which will take years to materialise. At the same time, specific decisions regarding the financial capacity of local communities, management efficiency, transparency of the timber market and the development of forestry should yield practical results in the very near future.
For the State Forest Resources Agency, participation in the Congress hearings represents an important opportunity to align the next steps in the reform with the needs of local communities, business and the state, and to ensure the development of the forestry sector based on the principles of efficiency, transparency and responsible management of forest resources.
