Viktor Smal has been working at the State Forest Resources Agency for over four years. Initially, he held the position of Deputy Head of the SFRA for Digital Development, Digital Transformation and Digitalisation, and since May 2023, he has been heading the Agency.
Before joining the Agency, you worked in commercial structures and developed your own business. Have you been able to use this experience in public service?
Working in the corporate sector, running your own business, and working in public service have different specifics. But at the same time, they complement each other and allow you to see the whole picture of the world.
In the corporate sector, as an employee, you understand your tasks, you understand that your bonuses are tied to the results of your work, and you feel this specific incentive. This is, so to speak, the bottom level of Maslow’s pyramid.
Running your own business radically shifts the focus. It makes you realise that the responsibility you felt in the corporate sector is nothing compared to the level you feel in business. You have to worry not only about yourself, but also about other people. You are more careful about your working hours. You ruthlessly reject tasks that do not lead to results. You become more efficient and results-oriented.
Public service is a completely different world. Achieving results in public service is much more difficult than in business or the corporate sector. All processes have greater inertia. Bureaucratic chains are long and easily broken, preventing the necessary results from being achieved. But a combination of experience and a desire to really change something allows you to achieve your goals in public service. And complex projects that have been implemented are very motivating to move forward.
The problem with public service is that it often employs people who have a very vague idea of the result. They are convinced that public service is more about the process.
But I think differently! That’s why in my current position, I also work for results – and I demand the same from my colleagues. In fact, this is the business experience that I use here. My principle is that at the end of the day, you have to answer the question ‘what did you do’ rather than ‘what were you doing’.
Let’s make that the next question: what have you done during your time at the Agency?
In fact, I began working on changes in the forestry sector even before joining the civil service. In 2015, I established and developed the IT agency WebAnatomia, which worked in the field of web production. The agency’s main clients were Ukrainian pharmaceutical companies and regional universal exchanges, where timber was sold at that time. And it was WebAnatomia that created one of the first online auctions in Ukraine for the sale of unprocessed timber. Now this process is centralised through exchanges licensed by the Securities Commission. But when I first got involved in the forestry industry, it was fragmented regional processes.
Therefore, when I took up the position of Deputy Head of the SFRA for Digital Development, Digital Transformation and Digitalisation, I already had an understanding of what reforms the industry needed. I formulated my main task as follows: to create the best timber traceability chain in Europe.
Have you managed to accomplish the task?
Without wanting to praise myself too much, I would say: yes, we are succeeding! It is a long process. But we have already completed the most important stages.
What are these stages?
Firstly, the electronic logging ticket. It has been operating successfully in the forestry sector since November 2023. As of mid-August 2025, we have issued over 174,000 tickets.
An electronic logging ticket is the main permit document required to begin any logging operation. It is issued by the territorial bodies of the SFRA and received by forest users.
The electronic ticket solves the following problems: it eliminates bureaucracy, reduces corruption, and strengthens control over volumes. It also eliminates abuse associated with the independent issuance of logging tickets.
Secondly, there is the electronic consignment note, or e-TTN. This document must accompany every batch of timber transported. e-TTNs have been electronic for a long time, but in 2021 we extended the use of e-TTNs to all forest users and improved the technology.
In 2023, we added mandatory photo documentation of the timber truck at the time of loading to the e-TTN. The vehicle is photographed from four angles: front, rear and sides. Now it is impossible to load one thing and transport another. The fact is that the layout of the assortments on the timber truck is unique each time, like fingerprints. If you load the vehicle a second time but show the previous photo, the fraud will be immediately apparent.
In addition, it is planned to add a time stamp and geolocation tag to the e-TTN, i.e. information about where and when the electronic document was created. We will verify its creation using satellite communication, as mobile coverage in remote forests is not always reliable.
The e-TTN is already entered into a database that is accessible online to any Internet user. Therefore, not only foresters and law enforcement officers, but also environmental activists can check a particular timber truck. To do this, it is not even necessary to stop the truck.
The third component is electronic timber accounting (ETA). The system monitors how much timber each forest user has harvested and how much they have sold. If a forest user does not enter information into the ETA, they are breaking the law.
The ETA was created in the early 2010s and was quite revolutionary at the time. However, the system now needs to be developed further. Therefore, in 2024, we began developing an improved second-generation ETA. It will extend the system to wood processors, ensure the scalability and speed of the system, which will help guarantee the transparency of the timber movement control mechanism, and allow for a complete transition to modern IT technologies and tools.
The fourth component is the certificate of origin of timber. This is the main document required for timber exports. In December 2023, the SFRA began issuing such certificates in electronic form. As of mid-August 2025, we have issued almost 109,000 certificates. The digitalisation of timber origin certificates automates document verification. After verifying the legality of the origin, the exporter receives their certificate.
And let’s not forget about the official online store ‘DrovaYe’. It’s the easiest way to buy firewood. The service became particularly relevant during blackouts.
On DrovaYe, customers deal directly with concrete forest users. Everything can be done in just a few clicks! The only problem is that we cannot always guarantee delivery of orders. This is because a large amount of equipment has been transferred by forestry enterprises to the front lines.
What stages of digitalisation have not yet been completed?
Introduction of remote forest scanning methods using LIDAR technology. This is necessary to determine the actual volume of a plot, which is often higher than stated in the paperwork. We encounter this technology even in everyday life — for example, it is used in robot vacuum cleaners, which scan objects in a room and plot a route for cleaning.
Of course, in the forestry industry, this system is more complex and multifunctional. The scanner is mounted on a flying object and ‘bombards’ the ground with a signal. The signal is reflected from objects and returns to the scanner. Depending on the distance from which it returned, the system makes conclusions about the height and density of obstacles, i.e. plantations.
The result is not just a 3D map of the forest stand, but complete information about it: the number of trees and their species, the height and diameter of the trunks, the timber stock by species, the age of the trees, and a digital landscape of the area.
The uncertainty in this case is no more than 1.5%. And that is very good quality. For comparison: if a forester counts trees by eye, the uncertainty is 15-20%!
The reason for the delay with the LIDAR system is clear – the war. It is Shahed drones flying over our forests, not 3D scanners. But we are ready. And as soon as security requirements allow, we will begin industrial scanning of our forests.
A GPS tracking platform for timber trucks is also under development. At the moment, the technical requirements for the system and the necessary business analytics have been developed. Our goal is to cover 100% of the timber truck fleet.
And it’s not just about moving dots on a map! The system will have several levels of validation, the purpose of which is to prevent abuse in the transportation of timber. This innovation will allow us to take control of all logistics operations related to timber.
We will be able to see the status of each vehicle in real time. First of all, we will check the reason for the timber truck’s movement: does it have the right to go to the forest at all? The system will see the link between a specific vehicle and a specific electronic logging ticket number with the coordinates of the area where the timber is to be loaded and the name of the driver. If, for example, according to the documents, the area is located in the Chernihiv region, but for some reason the vehicle is travelling in the Cherkasy region, we will receive a corresponding notification in the system.
The system will also monitor other violations. For example, if a loaded timber truck starts moving and the consignment note for it has not yet been created.
What’s more, the creation of the consignment note can be verified even before the vehicle starts moving. The laws of physics come to the rescue here. As the timber truck is filled, the pressure on the chassis increases. This indicator will also be transmitted to the tracking system.
I have already mentioned the modernisation of electronic timber accounting. Currently, EТА ends at the stage when timber is auctioned. After that, we lose control over the domestic market. Therefore, we need an additional tool – a system for declaring timber sales transactions.
This system will be similar to the online banking app that each of us uses on our smartphones. The same principles apply: electronic office, balance, movement of assets. Only instead of money, there are available timber stocks. This system will allow us to keep track of the virtual timber balances of each market participant. All timber volumes that are not reflected in the transaction declaration system will automatically be considered illegal.
You said, ‘We are creating the best traceability chain in Europe.’ Are we really better than the European Union countries?
When we communicate with colleagues from Germany or Poland, we understand that our well-established digital tools are something they do not have. Our traceability chain is very strong, even without all the tools mentioned above being implemented.
It is worth mentioning that such a traceability chain is, in a way, a necessary step. It was our response to challenges, primarily corruption. Europeans trust employees in the system so much that they do not even set the task of increased control.
In particular, we are already prepared for the EUDR – the European Union Regulation on deforestation and forest degradation. We do not need to take additional steps to catch up with them. Many EU countries, however, do need to take such steps.
So, is the risk of deforestation lower in Ukraine than in the European Union? Not every Ukrainian would believe that…
Exactly! It is difficult to find another industry in Ukraine where there are so many stereotypes. That is why we now want to significantly strengthen our communication efforts to convey the real state of affairs to people.
Let me give you just one telling example. The annual growth in timber volume in Ukraine’s forests is much greater than the volume harvested. In 2024, the growth amounted to 35 million cubic metres of timber. And the harvest was only 15 million cubic metres!
The situation is different in European countries: they use almost all of the increase they receive per year. For example, in 2024, Germany used 95 million cubic metres out of 98, and Poland used 38 million cubic metres out of 40.
And this is recognised in Europe! The European Commission recently published an updated list of countries classified by risk level in accordance with the EUDR Regulation. Ukraine has been granted low-risk status for the first time – the best possible rating!
What does this mean for Ukraine?
Being granted low-risk country status opens up new opportunities for Ukrainian exporters of timber, furniture and other products, facilitating their entry into the European market. This status attracts the attention of market giants such as IKEA and JUSK.
But we are not ahead of Europe in all respects, are we? In what areas do we need to ‘catch up’ to their level?
Management methods. This is an area where we are still ‘playing out’ the legacy of the USSR. What’s more, even of Austria-Hungary! As in the case of the Carpathians.
Are you referring to the infamous topic of the ‘bald Carpathians’?
Yes. During the Austro-Hungarian Empire, the native tree stands were cut down and replaced with new ones, including the familiar spruce trees. This species grows quickly and produces a lot of wood.
Soviet foresters continued their experiments with forests. The country was recovering after World War II and needed a lot of wood.
Therefore, areas were planted using plantation methods, where only one crop grows on huge areas – the same spruce. When a forest is planted in this way, it is then cut down in a continuous manner. The plantation was planted, the plantation was cut down, and we go around in circles. And this circle needs to be broken with new management methods.
Last year, the government adopted Resolution No. 454, which prohibits clear-cutting in the Carpathian region from 2027. That is, the method of management that non-specialists call ‘mass felling’.
Clear-cutting will be replaced by selective cutting, namely, restructuring cutting. Thanks to this, it will be possible to transform the forest from one state to another.
The method of forming new forests will also change. These will be complex plantations – multi-tiered, mixed, and of different ages. In other words, they will be as close to nature as possible. In this way, we will form biologically more sustainable plantations – both in terms of pests and natural disasters.
If we have a single-tier forest, it is more vulnerable to natural disasters. When a windstorm begins, the forest falls in a single tier. If, however, our forest consists of several tiers, then only some of them will be affected, while the others will remain standing. The same applies to pests.
Returning to the comparison with Europe: they are also more progressive in the use of logging technology. Instead of manual labour, they use harvesters and forwarders – modern machines. If you see them in action for the first time, you might think you are watching a science fiction film.
A harvester not only cuts down a tree, cleans it of branches and stacks them together. It can also calculate the volume of felled timber and send the data to a central database. No human being can calculate with such accuracy and speed!
One harvester costs about 600,000 euros, but it pays for itself in just four years. Ukraine’s forestry industry needs 150 such machines. Yes, it’s not cheap. But it’s worth it!
Incidentally, at the end of last year, the SFRA received seven pieces of logging equipment from Denmark – six forwarders and one harvester. This equipment will be used primarily for training specialists. We plan to establish a training centre for operators of multifunctional equipment at the Dnipro-Teteriv Forestry and Hunting Enterprise in the near future.
We are very grateful to our European partners for their assistance.
Tell us more about international cooperation. What are its main areas?
I sometimes joke that Ukrainian forests are much more international than they seem. Every month, industry representatives travel abroad to our partner countries. Or our partners visit us despite the war.
It would take hours to list all the areas and projects. I will give just a few examples.
The State Forest Resources Agency is part of four working groups responsible for preparing Ukraine’s negotiating positions on the relevant sections of the European Union’s negotiating framework. A bilateral meeting was held in Brussels between delegations from Ukraine and representatives of the European Commission as part of the official screening under Chapter 27, ‘Environment and Climate Change.’
We are actively cooperating with international organisations. For example, with the support of the Food and Agriculture Organisation of the United Nations (FAO), a project entitled ‘Sustainable Ukrainian Forest Landscapes’ is being prepared with funding of over $7 million. It involves the creation of a unique genetic molecular laboratory and a soil research laboratory.
And, of course, bilateral cooperation is developing, primarily with European countries. In particular, two key projects are being implemented with Germany with the assistance of the Federal Ministry of Food and Agriculture (BMEL).
The first is ‘Strengthening forestry planning for more efficient use of wood in the context of the war in Ukraine’ with a budget of $400,000. It involves the purchase of equipment and the creation of a state forest cadastre.
The second is ‘Promoting of multi-functional sustainable forest management planning and implementation in Ukraine’ with a budget of €1.26 million. This project contributes to the improvement of forest policy and the strengthening of institutional capacities in the field of forest management.
Not everything in the forestry sector depends on you. What legislative initiatives do you need to accelerate reforms?
I will outline a few key points. We need to amend the legislation to increase the liability of forest users for systematic violations of the law. Those who do not carry out maintenance felling or plant new crops must understand that the status of a permanent forest user is not so permanent. And there will be consequences for violations.
We have also developed a draft amendment to the law on the specifics of our foreign economic activity and export regime. Current legislation allows certain wood products to be exported without certification. These include oak veneer and lamellae. We want to regulate this issue.
Liberalisation of forest management. This could provide for the admission of private businesses to certain types of work, such as field research.
Corporatisation of the state-owned enterprise ‘Forests of Ukraine’. On the instructions of the President and by decision of the National Security and Defence Council, we have developed and submitted to the former Ministry of Environmental Protection a law that provides for corporatisation under a special scenario and the consolidation of state forest users around the state-owned enterprise ‘Forests of Ukraine’. Separation of management and control functions – even more so than now. Finally, subordination of the State Enterprise ‘Forests of Ukraine’ directly to the Cabinet of Ministers.
But the main legislative problem is EIA, environmental impact assessment?
Exactly! This is not a problem for the Agency, but for the whole of Ukraine. More precisely, the problem is not the environmental impact assessment itself – it is common European practice – but its excessive regulation in Ukraine.
An environmental impact assessment is carried out in cases where we want to establish that a particular forestry measure will not have a significant impact on the ecosystem as a whole.
In European countries, EIA in forests is carried out in three main cases. The first is when it comes to deforestation. That is, there will never be a forest on this site. For example, there will be a factory there.
The second case concerns the creation of new forests and the afforestation of large areas. For example, 20 hectares or more.
And the third case concerns the transfer of land from the forest fund, for example, to the agricultural fund. But even in this case, it is a matter of equal replacement of some land with other land. And if land is taken away in Europe for the agricultural fund, then the same area must be transferred from the agricultural fund to the forest fund.
As for Ukraine, here the EIA must be carried out during the preparation of forest management materials and before the complete sanitary felling of an area of 1 hectare. It is the latter case that poses a problem.
Clear-cutting is carried out when it is necessary to clear debris after a storm. Or to remove burnt trees after a forest fire, or to urgently destroy a pest infestation. This is not just about the aesthetic appearance of the forest. It is about the ecological safety of the ecosystem. Only after this can foresters plant new crops on the affected area.
And while main use logging is planned and foresters can order an assessment in advance, natural disasters cannot be planned. So, while the EIA procedure is ongoing, broken or burnt wood cannot be touched.
The EIA procedure costs an average of half a million hryvnias and takes three to six months, and sometimes even longer. During this time, the wood rots or dries out and poses a risk to the ecosystem. And while we are conducting an environmental impact assessment, the affected forest is already having such a negative impact.
In addition, over time, felled timber loses its commercial value. And since clear-cutting accounts for almost 20% of the total volume of timber harvested, the losses on a national scale are significant.
Let me give you a specific example. A pest, the emerald ash borer, is currently spreading through Ukrainian forests. We cannot work at the epicentre of its emergence, which is the temporarily occupied Luhansk region. But we could create a quarantine zone in certain areas of the forest. In other words, we could control the destruction of trees along with the pests. And in this way, save other forests.
But we cannot! We have to wait for an environmental impact assessment. And the pest is not waiting: these green insects have already been spotted in the green spaces of Kyiv!
Are there any issues that you resolve at the local rather than central government level?
First of all, there is the issue of forests that have not been granted for use to any forest user. These forests are fully-fledged ecosystems that are currently not being managed because they have not been allocated. This accounts for 7% of Ukraine’s state forest fund, or 800,000 hectares. That is three times the size of Luxembourg, or half of Montenegro!
The transfer of such land for permanent forest use is impossible without cooperation with local authorities. If the forest is located on state land, the decision must be made by the regional state administration. If it is on communal land, the decision must be made by the territorial community.
Local authorities can delegate forests to divisions of the State Enterprise ‘Forests of Ukraine.’ Alternatively, they can establish their own municipal enterprise to manage the forests, as permitted by law. The key is to ensure that the forest is not left without an owner.
When huge areas of forest resources are temporarily occupied or mined, every hectare is valuable. In order to adequately supply the Armed Forces and woodworking enterprises with timber, we must use all available resources as efficiently as possible. Therefore, the State Forest Resources Agency of Ukraine is actively working with local authorities to resolve this issue. Over the past few years, we have implemented a number of institutional changes in the industry. This has increased the transparency and traceability of timber. It has brought us closer to EU standards and had a positive impact on all financial and economic indicators in the industry. Our reforms will be recognised by leading Western countries today and will become a model to follow tomorrow. The country’s new status as a low-risk exporter is the best confirmation of this. Our forests are the lungs of Europe. And they will breathe freely.
