Forests of Ukraine sets record, sells unprocessed wood for UAH 8.9 bln in Q2 2025
SOE "Forests of Ukraine" set another record and sold in April-June unprocessed wood for UAH 8.9 billion, the company's Director General Yuriy Bolokhovets said on Facebook.
"Forests of Ukraine increased revenues to the state and local budgets by 40%. Tax payments in the first half of the year increased by over UAH 1.7 billion compared to the same period in 2024," he said.
Bolokhovets said the state-owned enterprise will use the profit after taxes to purchase new fire equipment (in the near future ten large fire engines), develop modern seed centers and infrastructure (forest roads, recreational areas, etc.), restore forestry in deoccupied territories, and mechanize harvesting (harvesters, forwarders, tractors, etc.).
He highly appreciated the effect of the concluded six-month forward contracts, under which buyers selected all the wood, which allowed for a 101% implementation of plans.
"Thanks to 'forwards,' wood processors can book the amount of raw materials they need and fix the price. The company also benefits. The guarantee deposit, which is returned only after 97% of the contract is fulfilled, motivates buyers to choose the entire contracted volume of products. Next year, the share of 'forwards' will be increased, annual contracts are planned," he said.
In addition, Ukrainian Forests has already shipped over 95% of timber under quarterly contracts for the second quarter. Most of the non-fulfillment is due to the fault of buyers, who either refuse the goods or do not make payment on time.
The state-owned enterprise drew attention to the fact that it pursues a flexible policy regarding mutual settlements, realizing that producers may have difficulties with working capital, because they do not immediately receive payment for manufactured forest products. However, the company sometimes resorts to suspending supplies until the buyer repays the debt, which to some extent affects the contract fulfillment rate.
"In general, the situation on the timber market is currently balanced. The rapid growth of the euro exchange rate has significantly strengthened the positions of Ukrainian exporters, so the forecasts for the second half of the year are more than optimistic," the Forests of Ukraine CEO said.
