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UK expands Ukraine partnership: £20m energy aid

The UK marked the first anniversary of the 100‑Year Partnership in Kyiv on 16 January 2026 with a shift from symbolism to delivery. Deputy Prime Minister David Lammy sketched a package aimed at improving operating conditions for business: £20 million for energy resilience, specialist training for commercial judges and a new push on public procurement reform. The government framed the moves as building investor confidence for the next phase of Ukraine’s recovery, according to the official speech transcript and press release on GOV.UK. ([gov.uk](Link

Energy is the immediate pressure point. The £20 million will help repair, protect and rapidly restore Ukraine’s power and heat supply during the winter, keeping homes, hospitals and schools running. For contractors and suppliers, that points to a near‑term pipeline in grid components, transformers, distributed generation and protection systems, with the UK signalling an appetite to support rapid deployment. The detail and framing were set out by the Ministry of Justice in Kyiv. ([gov.uk](Link

Contract certainty matters as much as capital. The judiciary of England and Wales will provide specialist training for Ukrainian commercial judges to resolve business disputes more efficiently and fairly. For investors, that speaks directly to enforceability risk and the speed of judgment-two variables that often decide whether a deal clears investment committees. This builds on UK‑supported programmes already working with Ukraine’s courts. ([gov.uk](Link

Procurement reform is the second leg. London and Kyiv will sign a new memorandum reaffirming Ukraine’s public procurement overhaul. Clearer rules, stronger oversight and consistent processes should make tendering more predictable for UK suppliers and Ukrainian partners as reconstruction scales. Lammy’s text placed this squarely as an economic reform to draw trade and investment, not a box‑ticking exercise. ([gov.uk](Link

Financing is the third piece. The UK confirmed an export‑credit push: UK Export Finance and Ukraine’s state export‑credit agency will deepen cooperation to support bilateral trade. In practice, that can mean buyer credit, working‑capital guarantees and insurance for UK exporters selling into Ukraine-tools that cut risk and help banks say yes. The 100‑Year Partnership Declaration already flags UKEF support for priority projects and potential payment‑protection cover for exporters. ([gov.uk](Link

Where might orders land first? The government highlighted three development programmes led by UK businesses: upgrades to school infrastructure and a net‑zero housing initiative. That steers early opportunities toward modular build, heat pumps, energy‑efficient materials, power‑quality services and construction management-areas where UK SMEs are competitive when paired with local partners. Expect frameworks that emphasise speed, standards and value for money. ([gov.uk](Link

One announcement runs in the other direction: Ukraine will share battlefield know‑how to help the UK curb illicit prison drones. For security and drone‑tech firms, that creates a practical route to test counter‑UAS solutions with the Prison Service and the Ministry of Justice, with a clear public‑safety customer. It’s also a reminder that dual‑use technology now sits inside everyday justice operations. ([gov.uk](Link

Beyond commerce, the people‑to‑people link is being widened. The schools‑twinning scheme-initially 50 UK schools with 50 in Ukraine-will be expanded by a further 150 schools in each country over three years. For business readers, that matters for the long run: language skills, networks and familiarity reduce transaction costs and support future trade. ([gov.uk](Link

The strategic backdrop still matters for balance sheets. The 100‑Year Partnership Declaration, signed on 16 January 2025, set multi‑year commitments including at least £3 billion a year in UK military assistance until 2030/31 and explicit use of UK Export Finance for priority projects. That predictability underwrites planning horizons for lenders and contractors evaluating multi‑year bids. ([gov.uk](Link

What should boards watch next? First, the text and timelines of the procurement MoU. Second, how quickly the judicial training translates into case‑management improvements in commercial courts. Third, the pipeline behind the school‑rebuild and net‑zero housing programmes. And finally, the first transactions under the UKEF–ECA Ukraine cooperation, which will show how far banks and insurers are prepared to go on cover.

The takeaway for UK suppliers is straightforward. If you can price risk and meet compliance demands, the mix of procurement reform, a clearer route to resolve disputes and export‑credit support points to a market that is still high‑risk but increasingly structured. In Kyiv this week, the UK’s message moved from support in principle to tools businesses can actually use. ([gov.uk](Link

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