THE PRICE OF CORRUPTION: Case #08. Black Timber (Forestry Sector)
This publication is based on official investigation materials from the SBI (State Bureau of Investigation) and court records from the High Anti-Corruption Court (HACC). We are breaking down this case to show the real consequences of corrupt abuses in the field of natural resources.
The Essence:
The creation of an organized crime group for the illegal logging of valuable tree species and their sale at undervalued prices to controlled firms for subsequent export.
The Situation:
Between 2023 and 2025, the leadership of one of the regional departments of forestry and hunting organized a large-scale scheme for the theft of state timber. Under the guise of “sanitary thinning,” clear-cutting of healthy oak and pine was conducted. Approximately 40% of the logged timber was not recorded at all, while the rest was sold through fictitious auctions to “affiliated” enterprises. The total amount of documented damages to the state in just one year of the scheme’s operation exceeded 120 million UAH.
The Bill Paid by Society:
- Ecological Catastrophe. Large-scale illegal logging has led to soil erosion and changes in the region’s hydrological regime, which will result in billions in costs for ecosystem restoration in the future.
- Losses to the AFU Budget. 120 million UAH is the price of over 2,000 modern FPV drones or dozens of armored vehicles that the army did not receive because of the enrichment of the “forest mafia.”
- Criminalization of the Region. The creation of a shadow timber market destroys legal businesses that cannot compete with “black” loggers operating without paying taxes.
The Bill Paid by the Perpetrators (Legal Finale):
- The Head of the Regional Forestry Department — received 9 years of imprisonment.
- The Director of the State Forestry Enterprise and two rangers — sentenced to terms ranging from 5 to 8 years.
- Full Confiscation: 4 private houses, 6 elite SUVs, and over $500,000 in cash found during searches in “hiding spots” on forestry grounds were seized as state income.
- Lifelong Disqualification: All perpetrators were entered into the Register of Corrupt Officials with a lifelong ban on working in state authorities or forest protection services.
Case Sources:
- Official reports from the SBI and the Office of the Prosecutor General (2024-2025).
- Analysis of court records: https://reyestr.court.gov.ua/
- Monitoring data from the State Enterprise “Forests of Ukraine.”
We continue to issue these bills.
This publication is part of a series of analytical materials “THE PRICE OF CORRUPTION”. Each such case will be analyzed, and the price will be made public.
To be continued…