Ukrainian President Petro Poroshenko has backed the idea of creating the new public system for financial and economic maintenance of forest industry – a financial forest fund, according to a posting on the website of the State Forest Agency of Ukraine.

"The draft strategy [for development and institutional reformation of forest industry in Ukraine for the period until 2022] has principles of public governance and financing and returning of the status of the key spending unit of budget funds to the State Forest Agency. The new public system for financial and economic maintenance of forest industry – a financial forest fund - is presented," Deputy Chairman of the State Forest Agency Volodymyr Bondar said.

He said that the issue was discussed at a meeting on the improvement of the public policy in the field of forestry and hunting economy chaired by Ukrainian President Petro Poroshenko in Ivano-Frankivsk last week.

"The Ukrainian president backed the proposed idea and instructed to work out the issue jointly with the Finance Ministry," the authority said.

The creation of the financial forest fund would help to prevent unlawful logging, introduce the balanced forest industry in southern and eastern parts of the country, conduct a stocktaking, prevent natural disasters and their aftermath, prevent outbreaks of forest pest spreading and forest diseases and cultivate planting stock.

The draft strategy also has a mechanism for improving the institutional structure of forest industry.

"We enshrine the principle of dividing management functions – management and oversight. Foresters should cultivate forest and protect it. Forest inspectors of the State Forest Agency should fulfill the oversight function," Bondar said.

The agency believes if the strategy is adopted, the country would be able to secure stable development of forest industry meeting Ukraine's international liabilities, create the effective management and oversight system, ensure planting of new forests and preserve biodiversity, settle the timber market, create new jobs and attract investment in the forest sector.