During the 82nd session of the UNECE Committee on Forests and the Forest Industry (COFFI), held at the Palaisdes Nations in Geneva, Switzerland, the Report on the State of the Timber Market in Ukraine for 2024 was presented.

The timber market in Ukraine has undergone significant changes due to Russia's large-scale aggression, which has profoundly impacted the socio-economic situation and caused losses amounting to approximately €447.73 million. The primary damages involve the destruction of infrastructure, equipment, and substantial harm to protected natural areas, estimated at over €2.3 billion. Restoring this potential will require considerable effort and resources.

Despite a sharp decline in activity in 2022, the timber market began to gradually recover in 2023. This recovery enabled the industry to contribute €241.77 million in taxes, exceeding state funding by a factor of 41.

The woodworking industry remains a vital component of Ukraine's economy despite the severe challenges posed by the war.

The Ukrainian government has initiated a series of reforms to improve forest resource management. One such reform was the establishment of the state enterprise "Forests of Ukraine" and the introduction of an electronic timber accounting system. These measures have enhanced transparency in the sector by requiring mandatory transaction declarations and stricter reporting standards. Digital tools, such as the e-Certificate and e-Felling Ticket, have automated timber accounting processes and reduced corruption risks. Additionally, mandatory photo documentation of timber transportation has improved transparency in the logistics of forest products.

The export ban on logs has provided a new impulse for the development of the domestic woodworking industry, although some export potential remains in fuelwood, which can contribute to Ukraine's energy independence.

The growing use of timber as biomass for renewable energy production and the demand for wood in "green" construction offer new opportunities for the timber market, particularly in the context of infrastructure reconstruction after widespread destruction.

Thus, despite significant losses, Ukraine's timber market remains stable due to government reforms and digitalization. It also holds promising development prospects in green energy and sustainable construction.

The full report is available at the following link: https://unece.org/forests/2024-country-market-statements