Forest. For some, it is a place of peace and inspiration, for others, a business, and for some, an opportunity to earn millions from shadow schemes involving state resources. The state enterprise "Forests of Ukraine," created to effectively manage forestry, has recently become an epicenter of scandals, corruption, and abuse. UNN tried to go back to the beginning of this story and understand how those who were supposed to protect Ukrainian forests turned them into a source of their own enrichment.
Background
In September 2022, the Cabinet of Ministers of Ukraine adopted Resolution No. 1003 "Some issues of reforming forest industry management," which initiated a large-scale reform of state forest management in Ukraine.
It was envisioned to establish clear forest management, fair distribution of finances, implementation of European approaches, and a transparent operating system. To achieve this, 158 forestries were merged into one large enterprise, "Forests of Ukraine," and instead of 24 regional administrations, 9 regional offices were created.
And then an interesting point – Yuriy Bolokhovets was appointed to manage the reformed industry – a person who had been dismissed from the position of Head of the State Forest Agency just two months prior. And not just dismissed, but due to corruption schemes amounting to hundreds of millions of hryvnias! That is, the fight against chaos in the forest industry was entrusted to someone who was expelled from the same industry for large-scale fraud.
Actual changes
Yuriy Bolokhovets' first steps as the head of the State Enterprise "Forests of Ukraine" included announcing mass dismissals and "tough purges" among forestry managers. It was stated that all this was for the sake of combating corruption and increasing the efficiency of forest resource management.
But what actually happened? We have only analyzed the events that have occurred with the involvement of the agency recently.
From the first day of his work, Bolokhovets' candidacy caused controversy due to corruption scandals and cast doubt on the effectiveness and transparency of the reforms carried out in the forest industry.
- In 2024, DBR employees reported suspicion to the executive director of the State Enterprise "Forests of Ukraine" and two department directors for embezzlement of funds during the purchase of mobile phones at inflated prices. One of the directors initiated the purchase of 2.5 thousand phones for over UAH 18 million without market analysis. Another director held a tender where the only participant was an enterprise with a price 30% higher than the market. The executive director approved the contract. Expertise confirmed the overpricing, which caused damages to the state of UAH 3 million.
- Bolokhovets' entire tenure has been accompanied by narratives that deforestation is happening faster than trees are growing. The Carpathians, Polissia, Podillia – regions that should be green. However, local residents notice trucks loaded with timber traveling on forest roads every day. The scheme is simple: the forest is cut down, and documents are drawn up as if it were sanitary clearing or legal felling. Just recently, the Security Service of Ukraine exposed a similar scheme in Prykarpattia. This involves the felling of valuable tree species and damages to the state amounting to over UAH 250 million.
- The situation in national parks also raises questions. For example, in the "Kuyalnytskyi" reserve, law enforcement officers uncovered mass felling of trees allegedly for the "rehabilitation" of the park. In total, over five hundred oaks, ashes, and acacias were illegally cut down. Damages to the state are estimated at over UAH 80 million. The DBR is investigating other episodes regarding tree felling on the territory of the "Kuyalnytskyi" natural park, with damages amounting to UAH 76 million. Procedural guidance is provided by the Odesa Regional Prosecutor's Office.
- And recently, a new high-profile scandal concerning Yuriy Bolokhovets and his entourage erupted in the media. Journalists found facts that the head of "Forests of Ukraine," Yuriy Bolokhovets, together with his entourage, built a luxurious estate on the outskirts of the village of Ivangorod in the Chernihiv region. This 80-hectare territory has its own infrastructure, houses, a lake, a stable, and animal enclosures. Locals call this place a "khutir" (farmstead). Once there was indeed Derkachiv khutir here, but now it is practically part of Ivangorod - the native village of Bolokhovets himself, his wife, and their family's business partners. How this contributes to the fulfillment of the reform's tasks, we ourselves do not know, but law enforcement officers are already studying these facts.
- In November 2023, the DBR opened criminal proceedings under four articles related to land seizure and illegal enrichment by Bolokhovets. According to the tax inspection, over four years, Bolokhovets' family acquired assets worth UAH 22.8 million with an official income of UAH 10.4 million.
Conclusion: Is there a chance for a better future?
The reform of the forest industry aimed to make the system more efficient and transparent. However, instead of the expected improvement, we are facing the threat of turning state forests into private property of corrupt officials and business elites.
Corruption, fraud, and illegal logging – all these are the realities that characterize the activities of the State Enterprise "Forests of Ukraine" under the leadership of Yuriy Bolokhovets today. Despite numerous scandals and exposures, the system continues to operate in its usual mode, showing no real desire for change.
Are changes possible? Theoretically, yes. However, their implementation requires not only loud statements but also concrete actions: transparent control, independent audit, effective investigation of corruption schemes, and fair punishment of the guilty. Without this, even the best reforms will remain mere formalities, and forestry will remain a source of enrichment for the chosen few.