The Asset Recovery and Management Agency (ARMA) has uncovered a corruption scheme in timber exports organized by officials of the Polissya Forestry Office in collusion with exporting companies that caused UAH 224 million in losses. Foresters deny these allegations.
ARMA published key figures based on the investigation on its website. The same day, the State Enterprise “Forests of Ukraine” published a response on its official Telegram channel.
What the experts of the Agency told about
At the request of the Main Investigation Department of the National Police of Ukraine, they conducted an investigation and found significant assets in a criminal proceeding regarding a corruption scheme in the forestry industry.
According to the investigation, officials of a state-owned forestry enterprise, officials of the Polissya Forestry Office and exporting companies were involved in a corruption scheme involving timber exports. The scheme allowed to significantly reduce the cost of timber.
"For the period of 2023-2024, the amount of such understatement amounted to UAH 224 million. Wood was exported through a company controlled by officials to more than 90 non-residents at below market prices," says ARMA.
His specialists in cooperation with the security department of the State Enterprise "Forests of Ukraine"were able to find:
- 45 land plots;
- 64 units of road transport;
- 40,402 cubic meters m of wood.
They handed over the information about the discovered assets to the law enforcement agencies. They should be arrested and handed over to ARMA.
What was the response of the State Enterprise "Forests of Ukraine"
The state enterprise, which manages the country's forests, said that the "Polisky Forestry Office" branch has nothing to do with the export of wood.
Here are their arguments in brief:
1. The Polissky Forestry Office has never exported wood or any other type of forest products.
2. The branch sells the entire volume of forest products at stock auctions. Its price is determined based on the results of open auctions and is absolutely transparent.
3. The Polissky Forestry Office offers non-residents participating in the auctions the service of loading into railway wagons and customs clearance.
"The exporter buys products at the market price and additionally pays the company for the services provided at the market prices," the foresters claim.
4. Over the past year, non-residents who bought the products of the Polis office absolutely legally and officially exported firewood for the total amount of UAH 45 million.
It looks very strange when the State Enterprise "Forests of Ukraine" denies the results of an investigation in which its own security department participated. We will follow this case in the future.
As EcoPolitic previously reported, investigators accused the former director of the Baranivka branch of the State Enterprise “Forests of Ukraine” Yuriy Yurchuk of creating a business empire at the expense of the state.
We also reported that, according to media reports, the State Enterprise “Forests of Ukraine” awarded a contract for UAH 1 billion to a little-known company with the highest price.
