In the Chernivtsi region, instead of stimulating the development of the mountainous areas' economy and strengthening local budgets, forest reform has led to a crisis in the industry and losses in communities. Authorities at various levels are shifting responsibility onto each other, but this does not change the situation—people remain unemployed, and settlements become subsidized.
This is discussed in an article published by BukInfo.
How to find those responsible?
A recent meeting between the heads of communities in the Vyzhnytskyi district and the head of the Chernivtsi Regional State Administration, Ruslan Osypenko, only confirmed the severity of the problem. According to the publication's team, the region's forestry sector is under the jurisdiction of the agro-industrial development administration and the regional development department. However, the head of the Regional State Administration stated that he was not competent in forestry issues, and the departments told the media that they had no influence on forestry, which is completely controlled by the capital.
Mass layoffs instead of prosperity
The reality in the region’s forestry sector is in stark contrast to the statements of Vasyl Honchar, head of the Podilsk Forest Office. As BukInfo writes, in promotional materials for the reform, the official assured future prosperity for forestry and the development of woodworking without job cuts.
One of the promises was to keep the woodworking plant in Serhiy working, which was an important employer for the community. However, reality is different – the asset is not operational, workers have faced mass layoffs, and the community alone lost 5 million UAH in personal income tax revenue.
Budgets are running dry
For the Putyla settlement community, the forestry sector was the main contributor to the budget. Now, according to BukInfo, of the 170 enterprises, mostly woodworking, only 10 remain. The biggest taxpayer now is the hospital, and 16% of the community’s budget comes from subsidies.
The reform also hit the Seliatyn rural community. Over 70% of its territory is covered with forests, where several powerful forestry enterprises once operated. However, after being “absorbed” by State Enterprise “Forests of Ukraine”, the Cheremosh National Park now pays more taxes than the assets engaged in logging.
Overall, before the reform, the forestry sector contributed 35% to the budgets of Vyzhnytsia district communities. Now, its share is around 10%.
Side effect of the reform
Forestry enterprises of the community ended up under the control of “Forests of Ukraine” with all financial and material assets.
When timber began to be sold through centralized exchanges, its price soared several times. As a result, woodworking assets located near logging sites cannot work with it – it is too expensive. As a result, a number of enterprises went bankrupt.
An additional “bonus” for “Forests of Ukraine” is preferential land tax rates, which further decrease community resources.
“This has led to the concentration of super-profits in the capital office of the newly-established forestry monopoly, and on the other hand – to the draining of production units on the ground and an increase in illegal logging, including the skillful 'under-the-table' use of digitalization tools in the sector,” the publication writes.
Ecopolitic reported that even before the reform, corruption in Ukraine's forestry sector was large-scale and systemic. After the reform, the situation did not change – in our weekly digests of environmental crimes, illegal logging, involving officials from forestry enterprises, continues to occupy a prominent place.
According to the State Bureau of Investigation, crimes committed by forestry sector officials in just 2025 caused the state losses amounting to 546 million UAH.
Yurii Bolokhovets, General Director of SE "Forests of Ukraine", himself featured in a case concerning illegal enrichment in 2025. However, he still remains at the helm of the forestry monopoly.
