Ukrainian law enforcement agencies are investigating a large-scale corruption scheme within the state forestry sector, where participants allegedly aimed to collect up to $50 million in off-the-record cash every month. According to insider sources in law enforcement, the shadow funds were intended to be generated through manipulation of timber sales, personnel appointments, and systematic cash-out operations across state enterprise «Forests of Ukraine» and the State Forest Resources Agency.
Sources indicate that the idea of establishing an off-the-record financial quota emerged following investigations into fraudulent call centers, where authorities tracked the redistribution of large cash flows. Initially, former head of «Forests of Ukraine» Yuriy Bolokhovets viewed these demands as unrealistic, as recent industry reforms had significantly reduced opportunities for grey market operations. Shortly thereafter, Bolokhovets was served a notice of suspicion by the State Bureau of Investigation (SBI), placed in a pre-trial detention center, and removed from his post.
Ihor Zubovych was subsequently appointed to lead the state enterprise. Law enforcement insiders report that the new management configuration was tasked with building a system capable of turning operational revenues into cash flow. However, the practical capacity of the forestry sector proved lower than expected, with actual grey revenues falling well short of the projected $50 million monthly target.
Attempts to explain the failure to meet the informal targets triggered internal conflicts within the management vertical. Failures to deliver the target funds were attributed to the head of the State Forest Resources Agency, Viktor Smal, who was accused of obstructing key processes.
Smal was formally suspended from his duties pending an official inquiry.
A subsequent audit failed to confirm critical violations that would substantiate the allegations against him.
The suspension created a administrative vacuum that other figures sought to leverage.
At this stage, Oleksiy Kucher entered the scene, allegedly convincing influential figures of his ability to streamline the operations and satisfy the financial quota. Kucher was considered a potential candidate to head the State Forest Resources Agency. In the same context, Oleksandr Lysenko, director of the Slobozhanskyi Forest Office of «Forests of Ukraine,» reportedly sought advancement and invested resources to lobby for this operational shift.
Beyond the primary $50 million quota, investigative materials point to an internal «bonus» allocation for the organizers. The management team reportedly sought an additional $5–10 million per month as personal incentive for maintaining the shadow mechanism.
«According to operational sources, key figures identified in the current investigative structure include Taras Vysotskyi, Oleksiy Kucher, and Ihor Zubovych.»
However, the implementation of these plans was disrupted by anti-corruption interventions. Operations conducted by the National Anti-Corruption Bureau of Ukraine (NABU) alongside the SBI severely compromised the network structure, throwing the future of the shadow financial targets into question.