The Cabinet of Ministers of Ukraine has adopted a decision on the distribution of powers in the forestry sector among ministries. The decision was formalized by Resolution No. 1029 of August 6, 2026, “Certain Issues Concerning the Activities of the Ministry of Economy and Environment and the Ministry of Agrarian Policy and Food.”
The decision takes into account the position of businesses and industry associations that advocated for the continuity of reforms in the forestry, woodworking, and furniture sectors.
Back in July 2026, the Federation of Employers of Ukraine, Wood Industry UA, the Lviv Furniture Cluster, the Ukrainian Furniture Association, the Association of Woodworking Enterprises of Ukraine, and other industry associations supported an initiative by Member of Parliament Oleksandr Kovalchuk.
The joint position was submitted to the Cabinet of Ministers of Ukraine and called for ensuring the continuity and institutional succession of reforms, as well as preserving the work and developments of the relevant government working group.
Key issues included:
Under the adopted decision, economic management of forests has been placed under the Ministry of Agrarian Policy and Food of Ukraine.
Its responsibilities include:
The State Agency of Forest Resources is directed and coordinated through the Minister of Agrarian Policy and Food.
Environmental protection control remains under the Ministry of Economy and Environment of Ukraine.
Its responsibilities include, in particular:
Thus, economic forest management is concentrated within one specialized ministry, while environmental oversight remains a separate safeguard.
Another important outcome of the industry dialogue is the draft Government Programme of Activities.
For the first time in a document of this level, the woodworking and furniture industries have been identified as a separate operational objective — “Sustainable Development of Wood Processing.” The objective has been assigned to the Ministry of Agrarian Policy and Food of Ukraine within the strategic priority “Accelerating Recovery and Economic Development.”
The programme reflects positions that the Federation of Employers of Ukraine, Wood Industry UA, and industry associations have consistently advocated in their dialogue with the Government and the relevant parliamentary committee.
In particular, the programme provides for:
The draft Government Programme of Activities sets the following targets:
At the same time, the industry considers the projected growth in timber harvesting insufficient. In 2025, Ukraine harvested 14.084 million cubic metres of timber — the lowest figure in the past 23 years and 38% below the 2016 peak.
“The Government and the industry should set a target of at least 16.5–17 million cubic metres of timber harvesting in 2027. This is not about placing additional pressure on forests. It is about making fuller use of the approved allowable cut, clearing accumulated volumes of sanitary logging, deregulating procedures, and restoring the technical capacity of forest users. This volume would provide the raw material base for real growth in processing and, consequently, for new jobs, tax revenues, and exports of high-value-added products. We are ready to work together with the Government on an appropriate action plan and its resource provision,” said Yurii Dyuh, Coordinator of the Wood Industry UA Economic Platform of the Federation of Employers of Ukraine.
The Government document explicitly outlines a shift from a raw-material-based economic model toward the production of high-value-added products within Ukraine.
For the forest-based industry, this means a stronger focus on domestic timber processing and the development of woodworking and furniture manufacturing.
The Lviv Furniture Cluster, together with the Federation of Employers of Ukraine, Wood Industry UA, the Ukrainian Furniture Association, the Association of Woodworking Enterprises of Ukraine, and other industry associations, contributed to shaping the sector’s position.
For the Cluster, it is essential that the reforms already initiated remain consistent and that government decisions create conditions for a transparent timber market, stable access to raw materials, and the development of Ukrainian manufacturing.
The Government’s decision to distribute powers and define the sustainable development of wood processing as a separate area of government policy is an important step in continuing this dialogue.
The Lviv Furniture Cluster will continue to participate in industry initiatives and constructive cooperation with the Government to support the development of Ukraine’s woodworking and furniture industries.
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