Ukraine's forestry industry profit surges 2.8-fold to $167 mln in 2025

Ukraine’s forestry industry posted net profits of UAH 6.9 billion ($167 million) in 2025, a 2.76-fold increase of 176% compared with 2024, State Forest Agency chief Viktor Smal said during his annual public report.

Revenue from timber sales rose by UAH 6.7 billion to UAH 30.4 billion ($736 million), according to figures released Sunday. Tax payments across all budget levels reached a record UAH 16.1 billion ($390 million), up UAH 6.8 billion from the previous year.

The sector’s profitability increased 12.3 percentage points to 22.8%, while average wages rose nearly UAH 6,000 to more than UAH 30,000 ($727) per month.

Before the 2020 reforms, when more resources were available, and working conditions were less extreme, the industry earned only UAH 0.2 billion — almost 35 times less, Smal said. "This is the best proof that the reforms we implemented have proven effective."

Yuriy Bolokhovets, director general of Forests of Ukraine, said the financial results reflected reduced off-the-books transactions and optimized costs. Moving 97% of the company’s procurement to the Prozorro platform saved more than UAH 700 million.

"Before the reforms, profits were lost. Today, financial flows work in the interests of the state and the industry," Bolokhovets said. "Increased profits mean record budget contributions, forest fire protection, support for the armed forces, and investment in technical modernization."

The agency said the positive trend was achieved despite reduced accessible forestry areas due to combat operations and territorial occupation. The industry currently employs 24,000 workers.