June 29, 2007

Forestry sector of Ukraine in transition to market economy

Forestry sector of Ukraine

Background

Ukraine is with its territory of 603,500 km2 one of the largest countries in Europe. It has a population of 49.3 million (as of January 1, 2001), and is made up of over 100 nationalities and ethnic groups (of which 73% are Ukrainian). From west to east, Ukraine extends 1316 km, and from south to north - almost 900 km. The total length of the Ukrainian border is about 6500 km, including 1050 km of coastline. Almost 95% of its surface consists of plains with an average height of 175 m above sea level. Exceptions are the mountain range of the Ukrainian Carpathians along the western border and the Crimean Mountains in the extreme south. The climate is temperate continental, excluding a narrow stripe of subtropical climate on the Crimean South Coast. The typical continental climate characteristics increase from the west to the east. Based on a combination of natural vegetation and climate, the country is divided in the five zones - Mixed forests, Forest-Steppe, Steppe, Carpathians and Crimea.

The total area of forest lands in Ukraine is 10.8 mln. ha, forests covered area is 9.4 million ha or 15.6 per cent of the Ukraine’s territory. Forest area per capita in Ukraine is in average 14 times less then in Eastern European countries. Though Ukraine takes the 34th place in Europe in such parameter as forest area/total area ratio, it takes the 9th place in total forest area after Russia, Sweden, Finland, France, Spain, Germany, Turkey and Italy (TBFRA-2000).

The forests of Ukraine are distributed very irregularly over the country, as a result of climatic conditions and anthropogenic influences over a long period of time. The largest forest territories are concentrated on the north and on the west parts of country, in mixed forests and in the Ukrainian Carpathians. Coniferous forests, including pine (Pinus sylvestris L.), spruce (Picea abies Karst.) and fir (Abies alba Mill.) occupy 42% of the forest-covered area. Hardwood species, mainly European oak (Quercus robur L.) and common beech (Fagus sylvatica L.), occupy 43% and almost 15% of the forest area consists of softwood broadleaves and shrubs.

The forests of Ukraine grow in five natural zones - zone of mixed forests, forest-steppe, steppe, mountain Crimea and Carpathians. Coniferous and hardwood tree species dominate in forests (Scotch pine, oak, spruce, maple, sycamore maple, ash). Coniferous stands cover 42 per cent of the total forest area, including Pines – 33 per cent; hardwood forests amount 43 per cent. Age structure of forest stands is follows: young – 32 per cent, middle aged – 44, premature – 13, mature – 11 per cent. Artificial stands amount about 50 per cent. Average growing stock on 1 ha of forest-covered lands is 186 m3 / ha, average change of stock is 3.8 m3 / ha. Total growing stock exceeds 1.7 milliard m3. Ukraine takes the 7th place in Europe in wood stock after Russia, Sweden, France, Germany, Poland and Finland (TBFRA-2000).

Forests in Ukraine are predominantly in under state ownership: 66 per cent of forest fund are managed by the State Committee of Forestry, 26 – by Ministry of Agrarian Policy, and 2 per cent – by Ministry of Defense. Another part of forest fund is managed by more than 50 other Ministries and agencies. Private forests amount less then 1 per cent of forest fund.

According to recent conception, the main roles of Ukrainian forests are their recreational and nature protective functions; their exploitation role is limited. National parks, other conservancy territories and protected forests cover about 14 per cent of forestlands managed by State Committee of Forestry.

Ukrainian forests are divided in two groups. The forests of the first group mainly fulfill protective functions. Timber management is restricted and rotation ages are much longer than in the commercial forests of the second group.

For each forest enterprise the allowable cut is calculated annually, based on forest inventory data and distinguished by tree species groups. The real size of harvest fellings usually equals 84-90% of the allowable volume of cutting.

Commercial wood logging after became independent of Ukraine essentially decreased during 1995-1997 years, but then gradually increased and recent years they have amounted about 11–14 mln. m3

The share of forest production in the total production in Ukraine is less than 1 per cent. After 1990, wood production in Ukrainian forests decreased because of general fall of purchasing capacity in internal market, however wood production export recently has increased. The total level of forest production sales has increased: in 1997 it was 373 mln. Ukrainian hrivna (UAH), in 1998 – 397 mln. UAH, in 1999 – 521 mln. UAH, in 2000 – 774 mln. UAH, in 2001 - 824.3 mln.UAH.

Forest policy developments and related institutional changes during the transition process – current status and progress made

Until 1917, Ukraine was divided between Russia and Austro-Hungarian Empires. After the revolution in 1917 and civil war, Ukraine was proclaimed by the Soviet socialist republic, and in December 30, 1922, became the part of the USSR.
Ukraine became independent in August 24, 1991 when the Parliament of Ukraine (Verchovna Rada) adopted the State Independence Act. Since independence, Ukraine has been transitioning through the difficult and intense process of socio-economic reforms, establishing of national institutions, and the formation of new political relations.

Acting legislative frameworks of forests and forest resources management in Ukraine are formulated in the Forest Code of Ukraine (1994) and Law on the Environmental Protection of Ukraine (1991), other legislative documents and government regulations. The documents declare:
  • State ownership of Ukrainian forests;
  • Ecological functions of forests restrict their commercial using;
  • Sustainable management of forests;
  • Reforestation and improvement of species composition and forests ecosystems conditions.

State Committee of Forestry of Ukraine is a state authorized body, responsible for the implementation of the national forest and hunting policy. State Forestry Committee of Ukraine is responsible for the state control and forest management in Ukraine (at the national level). At the regional and local levels:
  • Republic Forestry and Hunting Management Committee of the Autonomous Republic of Crimea, 24 regional forestry administrations (at the regional level).
  • State forestry and hunting enterprises (at the local level). They perform functions of control and forests management.

The main actors in forest sector are the state administrative institution, namely - the State Committee of Forestry and forestry enterprises subjected to it. These institutions fulfill combined functions of the control, administration, legislation with management and commercial activities what is the main disadvantage of this system. This control-administrative system of forest management can be efficient at the transition period but it should be replaced in the market economy conditions.

The division of State control functions and economic activity in State forest enterprises arises now in Ukrainian forestry. The recent state administrative decisions were aimed to eliminate this disadvantage. Two Decrees of Ukrainian President concerning the directions of national forestry development were adopted in 2004. According to Ukrainian President Decree from January 5 2004 (No1/2004) - “On the activity for strengthening of State control in field of protection, use and reproduction of forests” the decision on the division of state and commercial functions, which was combined in State Committee of Forestry, has been adopted. In the Decree of Ukrainian President No1/2004 is pointed that the State Control Inspection for protection, using and reproduction of forests should be created in Ministry of Environment of Ukraine. This Inspection will function as governmental body for state control in field of forestry. A lot of changes in forest policy development have been made in Ukraine recently:
  • Land Code of Ukraine adopted by the Parliament (2001)
  • the State Programme “Forests of Ukraine 2002-2015” adopted by the Government (resolution №581 on 29.04.2002).
  • several Decrees which aimed to develop of forestry of Ukraine adopted by President of Ukraine (2004)

In the new Land Code of Ukraine, approved by the Ukrainian Parliament in October 2001, private land ownership was legally enabled. Parliamentary adoption of new Land Code caused the necessity to change the Forest Code of Ukraine (1994). According to the Land Code, the forest plots with area less than 5 ha can become private and private forests can be planted on the private non-fertile lands.

According to the Decree of President of Ukraine from 7 February 2004 (No171/2004) - “About the additional activity for development of forestry” the next measures should be done in 2004:
  • Development of the new Forest Code
  • Preparation of the regional programs for development of forestry
  • State Forest Inventory for all forests in Ukraine
  • Preparation of the state documents confirming the rights of forest enterprises to carry out activity in the territories fixed behind them;
  • Creation of the territorial state forests management bodies in regions
  • Strengthening of possibilities of the state forestry enterprises for the profound timber processing
  • Development of wood sales on stock exchanges and auction, introduction of restrictions and special regimes for timber export
  • Harmonization of the State Forest Inventory and the Forest Cadastre with the requirements of the European Union;
  • Amplification of the state control for the observance of the forest legislation
  • Improvement of the duty and gathering system for timber logging and forests use
  • Improvement of the financing mechanisms for forest management
  • Transfers of the part of former collective-farm forests to the state forestry enterprises

The important problem for Ukrainian forestry is forest that contaminated after Chernobyl Nuclear Power Plant catastrophe. Around 3.5 million hectares of forest was contaminated. 157,000 hectares of forest have a high level of radioactive contamination by cesium-137 (above 15 Ki/square km). Therefore these forests are not exploited. 43.8% of the total contaminated territory is polluted by cesium-137 above 1 Ki/cubic km, forest exploitation is limited there.

The greatest territories of contaminated forest are situated in Zhytomyr (60%), Kyiv (52,2%), Rivny (56,2%) Regions. In Volyn, Chernigiv, Cherkasy, Vinnitsa and Sumy Regions there are 20% of contaminated forests. That is why all raw materials and wood products are checked for radiation. In the State Committee of Forestry there was organized a Radiological Service which controls radiation in timber. It consists of 8 radiation laboratories. Besides radiologists work in state forest enterprises, situated in contaminated areas. Radiological service is equipped with modern doze and radiation measuring devices, all laboratories are certified.