Back to Home

Illegal logging: how it affects the global economy

In Ukraine, a former forest master organized illegal logging in a national park, causing damage of 5 million hryvnias. The article explains why this local case reflects the global problem of illegal logging, its impact on the climate and global timber markets.

Illegal logging in a nature reserve: why it concerns everyone
Advertisement 728x90

Illegal logging in a nature reserve: how a local corruption case reflects global environmental and economic trends

In Ukraine, a former forest master organized illegal logging in the territory of the Vyzhnytskyi National Nature Park. The damage to the state amounts to over 5 million hryvnias (about $120,000). Although the sum is small by global standards, this case is part of a larger problem: illegal logging causes tens of billions of dollars in damage to the global economy each year and accelerates climate change.

What happened in Bukovyna?

At the end of 2024, the Berehomet Forestry entered into a contract with a private company to carry out sanitary logging in the Vyzhnytskyi National Park. According to the documents, only dry and diseased trees were to be removed. However, in reality, things went differently.

The forest master hired informally employed workers without qualifications. Under his direction, they cut down not only diseased trees but also healthy ones—firs, beeches, spruces. The official version: the trees were "in the way" of building a forest road. But investigators believe that the road was actually built to illegally transport timber.

Google AdInline article slot

The work was carried out gradually, following proper procedures to avoid attracting attention. In the end, the state suffered damages of 5 million hryvnias. The suspect's property was seized: a car and four land plots worth about 6 million hryvnias. The former master faces 7 to 10 years in prison.

Why does this matter globally?

Illegal logging is not a local problem. According to Interpol, it generates up to $152 billion annually for criminal groups. This is comparable to the GDP of some countries. Forests are the "lungs of the planet": they absorb carbon dioxide and release oxygen. When they are cut down, carbon enters the atmosphere, intensifying the greenhouse effect.

Moreover, illegal timber often enters international markets, distorting prices for legal producers. Major importers—China, EU countries, the USA—are increasingly imposing restrictions on timber imports without proof of legality. For example, the European Union has tightened the EU Timber Regulation (EUTR), and the USA has strengthened the Lacey Act.

Google AdInline article slot

What is "sanitary logging" and how is it used as a cover?

Sanitary logging is the removal of diseased, damaged, or dead trees to improve forest health. But it is an ideal cover for illegal logging of healthy timber. The scheme is simple:

  • A contract for sanitary logging is signed.
  • Along with diseased trees, healthy valuable species are cut down.
  • The timber is sold on the black market.
  • The damage is attributed to "natural causes" or "errors."

In this case, the forest master went even further: he built a road to transport timber, enabling logging in hard-to-reach areas.

Key takeaways

  • Illegal logging is not only an environmental but also an economic crime affecting global timber markets.
  • Such schemes undermine efforts to combat climate change: forests are a key carbon sink.
  • International regulators are tightening controls on timber origin, increasing risks for importers.
  • The case in Ukraine is just one episode; systemic reforms in forestry are needed for real impact.

What does this mean for ordinary people?

Every time you buy wooden furniture or paper, you may inadvertently support illegal logging. Look for FSC or PEFC certification—a sign that the timber was legally sourced. Additionally, combating illegal logging slows climate change, which affects everyone—from farmers to city dwellers.

Google AdInline article slot

— Editorial Team

Advertisement 728x90

Read Next

Partner News