A meeting was held on May 11, 2023, at the President’s Office regarding the reform of the forestry industry, which was attended by members of parliament and representatives of businesses, including the Ukrainian Association of Furniture Manufacturers, the European Business Association, the Association of Exchange and Electronic Platforms, and others.

The reform had been discussed for over 10 years, but only now has the President’s team moved from words to action and accomplished the task. Ukraine is capable of carrying out reforms, as evidenced by the successful process of reforming the forestry sector conducted during the war.

Volodymyr Patis, President of the Ukrainian Association of Furniture Manufacturers, raised the issue of motivating forest management leaders within the reform and fighting corruption, to which he received a response from the Deputy Head of the President’s Office, Rostyslav Shurma, about establishing KPIs and corresponding financial rewards.

Oksana Donska, a member of the Board of the Ukrainian Association of Furniture Manufacturers and CEO of the FUBE exhibition, emphasized the importance of shifting the focus in the strategy for the development of the economy from the export of lumber to the export of furniture as a product with higher added value.

Yuriy Bolokhovets, head of the “Forests of Ukraine” state enterprise, spoke about the current results of the reform of the forestry industry, arguing with the indicators of the volume of harvesting and the profit received by the state enterprise.

The new reform introduced in Ukraine is the European model of separating the controlling and economic functions, which is supported by European partners. The economic management of the forestry industry is concentrated at the central level, which allowed for the creation of a quality and effective team of managers, attracting investments and quickly implementing large-scale tasks. The results of the reform were noticeable already after the first quarter when the profit was higher than pre-war. The reasons for success were the reboot of the management team, a coordinated and flexible economic policy, transparent implementation and procurement, cost optimization, reduction of unnecessary administrative staff, strengthening control over local leaders, and denationalization. The reform does not mean the possibility of de-nationalizing the forest fund, the state retains absolute control, and the forests are protected.

The goal of the reform is to catch up with Poland and the Baltic countries in terms of efficiency and technology level, prepare infrastructure and resources to attract investors, expand production, and rebuild the country after the war.