Business news from Ukraine

Business news from Ukraine

Starting January 1, United Kingdom will cut payments to families hosting Ukrainian refugees by 71%

Starting January 1, 2027, the UK will significantly reduce government support for the Homes for Ukraine program: monthly payments to British households providing housing to Ukrainians will drop from £350 to £100, according to The Guardian.

As a result, the so-called “thank you payment” will be reduced by 71.4%.

The new rules will apply to both current hosts already participating in Homes for Ukraine and new participants in the program.

At the same time, the British government is also cutting funding to local authorities responsible for implementing the program. The payment to municipalities per arriving Ukrainian will decrease from 5,900 to 3,300.

According to The Guardian, since the launch of Homes for Ukraine in March 2022, 181,000 of the approximately 234,000 Ukrainians who arrived in the UK after the start of the full-scale war have received support through the program. The British government has already allocated more than £1.81 billion to implement the program.

The funding cut is raising concerns among Ukrainians and host families about the program’s continued ability to provide free housing. Program participants interviewed by The Guardian said that the reduction in payments could force some hosts to withdraw from the program.

As one option for continued residency, the British government suggests that hosts could transition from their current status to a standard landlord-tenant relationship, under which Ukrainians would pay for their housing themselves.

This could be a particularly sensitive issue for elderly Ukrainians, people with disabilities, and low-income families, who would find it difficult to pay rent on their own in the British housing market.

It is important to note that the £350 is not rent paid to Ukrainians, but a government payment to the host household. Only one such payment may be made per address, regardless of the number of guests staying there.

For Ukrainians who have transitioned from the Homes for Ukraine visa to the Ukraine Permission Extension (UPE) program, payments to the host may be made for no more than 18 months from the date the guest first transitioned to UPE. After this period, the government’s “thank you payment” ceases.

Homes for Ukraine was launched by the British government on March 14, 2022. The program allowed UK residents to provide Ukrainians with housing in their homes or separate properties, while receiving a monthly compensation payment from the government.

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English village symbolically voted to leave United Kingdom over migrant center

Residents of the village of Piddington in Oxfordshire held a symbolic referendum on leaving the United Kingdom to protest the government’s plans to establish a large center for asylum seekers nearby, according to The Daily Telegraph.
285 people voted in favor of Piddington’s “independence,” 26 voted against it, and one ballot was deemed invalid. Voter turnout was approximately 92%. The vote has no legal force and does not trigger any procedure for the village to leave the United Kingdom.
The reason for this unusual referendum was the British Home Office’s plans to convert part of the former military facility Bicester Garrison Site A, located between Piddington and Upper Arncott, into a temporary accommodation center for asylum seekers.
According to official documentation, the facility is designed to accommodate a maximum of 1,256 people, primarily single adult men. By comparison, the population of Piddington itself is about 350 people, so the potential number of residents at the center could be more than three times the village’s population.
The project involves the use of existing buildings at a former military base, the construction of modular housing, and the creation of medical and social infrastructure, security systems, parking lots, and recreational areas. The government’s application is currently under review.
Local authorities have also criticized the project’s planning process. The Cherwell District Council reported that the municipality was not consulted prior to the announcement of the government’s plans, and that the authorities only learned of the intention to open the center shortly before the public announcement in June. The council is demanding additional clarification from the government regarding security, the strain on infrastructure, policing, and social services.
The organizers of the vote emphasize that the idea of “independence” was primarily a way to attract the central government’s attention. Following the referendum, the village is even discussing the tongue-in-cheek name “Principality of Piddington” and other symbolic attributes of a separate state.
The British authorities, for their part, explain the creation of large specialized centers as an effort to gradually phase out the practice of housing asylum seekers in hotels. The Home Office states that former military facilities are intended to provide more manageable and less expensive housing for people awaiting decisions on their applications. The government expects to reduce costs by more than 1 billion pounds in this way.
However, the decision to establish a center at Bicester Garrison has not yet been finalized. The Home Office’s official website states that the use of new military sites is possible only after the necessary assessments, approvals, and planning procedures have been completed.
Original source: The Daily Telegraph, September 16, 2026.

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British Landlords Shrinking Their Portfolios Amid Expensive Loans, Rental Reform, and Political Instability

Private landlords in the U.K. are increasingly selling properties or planning to exit the market amid rising financing costs and tax and regulatory burdens. The decline in supply is already leading to further increases in rent and is occurring at a time when the country is experiencing a change in government and a period of heightened economic uncertainty.

According to official data from the UK’s Office for National Statistics (ONS), in July 2026, the average private rent reached £1,393 per month, up 3.7% year-over-year. In England, the figure stood at £1,451, and in London, it was £2,317 per month.

A study by the Lomond agency network paints a similar picture, showing that British renters are already spending an average of 32.7% of their annual income on housing. According to the company’s methodology, the average rent was £1,369 per month, 4.3% higher than a year earlier. The discrepancy with ONS data is due to different sample sizes and calculation methods.

At the same time, supply from landlords is shrinking. A July survey by the Royal Institution of Chartered Surveyors (RICS) showed that new listings from landlords stood at -27%. Market participants report that landlords are reducing their portfolios or exiting the sector entirely. Despite more subdued demand from tenants, the balance of expectations for further rent increases rose to +28%.

A survey of more than 2,000 landlords conducted by Property118 in the second quarter paints an even bleaker picture: 40.2% had already reduced their portfolios over the previous two years, while only 6% had expanded them. Looking ahead to the next three years, 67.7% of respondents expect to sell at least part of their real estate holdings, while 27.1% intend to exit the market entirely.

One of the main reasons remains the high cost of borrowing. The Bank of England’s base rate stands at 3.75%, significantly higher than the levels seen during the era of cheap money prior to 2022. More than a third of the landlords surveyed will need to refinance their mortgages within the next year, which for many means switching from old, cheap fixed rates to significantly more expensive terms.

An additional factor has been the most significant reform of the private rental market in many years. As of May 1, 2026, the main provisions of the Renters’ Rights Act came into effect in England: Section 21 evictions without cause have been abolished, fixed-term leases are being replaced by a system of periodic tenancies, and landlords’ responsibilities have been strengthened. Starting in late 2026, the government will begin implementing a mandatory private rental housing registry, for which registration will incur a fee. Additional quality standards and a mandatory ombudsman will be introduced in the future.

That said, it would be incorrect to attribute the mass plans to sell properties solely to the new law. Pressure on the sector has been building for years due to tax changes, restrictions on mortgage interest deductions, and rising costs for insurance, repairs, and property maintenance. The new rules have merely become yet another factor forcing owners to reevaluate the economics of buy-to-let.

The situation in the housing market is unfolding against a backdrop of serious political instability in the United Kingdom. Keir Starmer stepped down as prime minister in the summer of 2026 after losing support within the Labour Party, and in September he decided to leave Parliament as well. He was succeeded by Andy Burnham, who became the UK’s seventh prime minister in a decade.

The new administration must simultaneously address the cost of living, the funding of social programs, and pressure on public finances. Yields on long-term British government bonds rose to approximately 5.26% in early September—a high not seen since 2008—which increases borrowing costs not only for the government but also, indirectly, for the entire economy. Investors are awaiting the new cabinet’s October budget and trying to understand how Burnham intends to finance his social and infrastructure initiatives.

It is still premature to speak of a full-blown economic crisis or recession in the UK. GDP grew by 0.4% in the second quarter of 2026, following 0.6% growth in the first quarter, though the pace of growth is slowing. Inflation accelerated again in July to 2.9%, unemployment reached 4.9%, and British businesses remain cautious about new investments.

It is precisely this combination of weak economic growth, high interest rates, and political uncertainty that is exacerbating problems in the rental market. The new cabinet aims to strengthen tenant protections, but as private landlords withdraw from the market, the opposite effect occurs: the fewer apartments available on the market, the greater the pressure on rent.

This presents a complex dilemma for the British government. If regulations and taxes continue to erode returns on private rentals faster than the government and institutional investors can build new housing, some of the costs of tenant protections may effectively be passed back to tenants in the form of higher rents and fewer housing options.

In the medium term, this could accelerate a structural shift in the British market: small private landlords will gradually be replaced by professional build-to-rent operators, pension funds, and investment funds capable of operating with lower returns and withstanding significantly stricter regulation.

Thus, the exit of British landlords is not an isolated real estate issue, but part of a broader picture: expensive capital, an economic slowdown, a crisis of political stability, and, at the same time, the government’s attempt to significantly tighten regulation of the housing market. For tenants, the main risk is not the mass disappearance of rental housing per se, but rather its continued rise in price and the shift in ownership from small landlords to large institutional investors.

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United Kingdom Could Match EU in Ukrainian Chicken Imports by 2027

According to Experts.news, the United Kingdom could come close to the entire European Union market in terms of Ukrainian chicken meat purchases by 2027, while the importance of Middle Eastern countries for Ukrainian exporters will decline, according to a forecast by the Kyiv office of the U.S. Department of Agriculture (USDA FAS).

In the “Poultry and Products Annual” report, published on August 19, 2026, the United Kingdom is identified as one of the key drivers of growth in Ukrainian chicken meat production and exports in 2026–2027.

On January 16, 2026, Ukraine and the United Kingdom agreed to extend the duty-free trade regime for chicken meat and a number of other agricultural products until March 31, 2028. The United Kingdom will not impose a tariff quota on Ukrainian chicken until that date.

According to USDA estimates, this effectively provides Ukrainian producers with nearly two additional years of unrestricted access to one of the world’s most price-competitive markets. In some months, retail prices for Ukrainian chicken in the United Kingdom have even been higher than in the EU.

As a result, FAS/Kyiv expects a further sharp increase in shipments to the United Kingdom. By 2027, their volume could become comparable to Ukraine’s total chicken exports to the EU.

At the same time, the European Union remains the industry’s largest premium market; however, shipments are limited by a new permanent duty-free quota of 120,000 metric tons per year.

The new quota was agreed upon by Ukraine and the EU in October 2025. It replaced the pre-war permanent quota of 90,000 metric tons and the temporary regime of autonomous trade measures, which allowed for significantly larger volumes to be exported. The USDA expects that in 2026–2027, actual exports to the EU will remain at the established limit of 120,000 metric tons.

The expansion of shipments to the UK and the EU is already changing the geography of Ukrainian exports.

The shift is particularly noticeable in the Middle East. The USDA reports that in 2026, Ukrainian chicken exports to Saudi Arabia—which had previously been Ukraine’s largest single export market for this product—ceased entirely.

This occurred despite MHP’s long-standing relationship with Saudi Arabia and the Saudi Agricultural and Livestock Investment Company (SALIC), which owns 13% of MHP. At the same time, the USDA anticipates that Ukrainian products may return to the Saudi market in the coming years.

Exports to Iraq, on the other hand, continue. The USDA specifically notes that Ukraine was not included in Iraq’s ban on chicken imports from 39 major supplier countries due to risks associated with highly pathogenic avian influenza.

Ukrainian producers also maintain a presence in the markets of Africa and the former Soviet Union countries; however, the most profitable European markets are gradually drawing a portion of the production toward them.

Exports via Turkey are primarily of a transit nature: according to USDA industry sources, most of the Ukrainian poultry arriving there is subsequently re-exported to Asia or Africa. At the same time, the free trade agreement between Ukraine and Turkey, which will take effect in 2026, provides for a separate duty-free quota of 2,000 metric tons for raw and processed poultry products.

Overall, according to the latest estimate by FAS/Kyiv, chicken meat exports from Ukraine will increase from about 450,000 metric tons in 2025 to 490,000 metric tons in 2026 and 530,000 metric tons in 2027.

Thus, one of the key changes over the next two years will be the further reorientation of the Ukrainian poultry industry toward the United Kingdom and the EU, at the expense of some of its traditional markets in the Middle East and Asia.

Source: USDA Foreign Agricultural Service, Ukraine: Poultry and Products Annual, UP2026-0022, August 19, 2026.

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United Kingdom Is Using Ukrainian Combat Data to Train AI to Protect Critical Infrastructure

According to The Guardian, the United Kingdom will gain access to Ukrainian battlefield data to train artificial intelligence systems that are planned to be used to protect military facilities and critical infrastructure from sabotage, drones, and other threats.

Ukraine and the UK signed a partnership agreement on artificial intelligence on August 24, 2026. The UK will become the first foreign partner to gain access to the Ukrainian platform Avengers AI Labs, the British government reported.

Avengers AI Labs aggregates a vast amount of real-world data collected by thousands of daytime cameras and infrared sensors on the battlefield. The system contains data on millions of objects, including tanks, artillery, air defense systems, personnel, and aerial targets—such as Shahed strike drones and reconnaissance drones. This data is used to train artificial intelligence models.

According to The Guardian, one of the first British pilot projects will be a system to protect a military facility using underground fiber-optic cables, which, with the help of AI, will be able to recognize characteristic movements of people and vehicles. In the future, such technologies could be applied at airports, railways, energy facilities, and prisons.
Three British technology companies—Sintela, Mind Foundry, and Skyral—have already been involved in the pilot projects. In particular, Sintela specializes in using fiber-optic networks as distributed sensors.

Another area of cooperation will be the development of a new generation of energy-efficient AI chips for drones, robotics, and autonomous systems. It is expected that such solutions will allow these systems to operate autonomously for longer periods and respond more quickly in challenging conditions.
The agreement calls for collaboration among governments, businesses, universities, and research centers in both countries. Ukraine provides unique data and experience in applying technologies under real combat conditions, while the United Kingdom contributes its research infrastructure, universities, and technology companies.

British Prime Minister Andy Burnham stated that combining Ukraine’s combat experience with British expertise in AI will accelerate the development of technologies for both Ukraine’s defense and the protection of critical British infrastructure.
The partnership is part of a 100-year agreement between Ukraine and the United Kingdom. The joint declaration calls for the development of AI models, secure data-sharing mechanisms, autonomous systems, cybersecurity technologies, and solutions for the defense industry.

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Netanyahu: “United Kingdom Could Become First Islamic Republic with Nuclear Weapons”

Israeli Prime Minister Benjamin Netanyahu called the United Kingdom an “Islamic republic” and reiterated his claim that it could become “the first Islamic republic with nuclear weapons.” The British government called his statements “absolutely unacceptable” and said it had raised the issue with Israeli authorities.

This statement was made on an Israeli Army Radio podcast, an episode of which was published on August 13, 2026. Speaking about the shift in attitudes toward Israel in the United Kingdom, Netanyahu used the phrase “Islamic Republic of Britain.” The host then asked him whether something similar was happening throughout Europe. The prime minister answered in the affirmative and cited a phrase previously used by someone else describing Britain as the future “first Islamic republic with nuclear weapons.”

However, the widely held interpretation that Netanyahu himself predicted Britain’s transformation into an Islamic nuclear republic is not entirely accurate. He did not present this phrase as his own prediction but explicitly stated that “someone had said” it. Israeli government spokesperson David Mencer later told the BBC that Netanyahu was referring to current U.S. Vice President J.D. Vance, who made a similar statement back in 2024.

Vance said at the time that the United Kingdom could become the first “truly Islamist country with nuclear weapons.” However, he himself made a caveat regarding Pakistan.

The very claim about the “first Islamic republic with nuclear weapons” is historically inaccurate. Pakistan is officially known as the Islamic Republic of Pakistan and has possessed nuclear weapons since the late 1990s.

London’s reaction was harsh. A British government spokesperson stated that Netanyahu’s comments were unacceptable and that this issue had already been raised during discussions with the Israeli side.

The remarks came amid deteriorating relations between Israel and a number of European countries. In the interview itself, the host broadened the question to include Europe as a whole, to which Netanyahu responded in the affirmative.

According to the latest assessment by the Stockholm International Peace Research Institute (SIPRI) Yearbook 2026, as of January 2026, nine states possessed or, as in the case of Israel, were considered to possess a total of approximately 12,187 nuclear warheads. About 9,745 of these were in military stockpiles and could potentially be used.

In order from the largest arsenal to the smallest:

Russia — about 5,459 warheads

United States — about 5,083

China—about 620

France—about 290

United Kingdom—about 225

India—about 190

Pakistan—about 170

Israel—about 90

North Korea—about 60

These are estimates of the total number of nuclear warheads, not just those deployed. The exact sizes of the arsenals are state secrets, so SIPRI emphasizes that the figures are approximate. Russia and the U.S. together continue to control about 86% of all nuclear warheads in the world.

China’s arsenal is growing particularly rapidly at the moment: SIPRI estimates it at approximately 620 warheads, up from 600 a year earlier. India has increased its estimated stockpile to 190, and North Korea, according to the institute’s assessment, may have assembled about 60 warheads and possesses fissile material for at least several dozen more.

The United Kingdom, at the center of the current diplomatic scandal, is estimated by SIPRI to have approximately 225 nuclear warheads. London has stopped publishing detailed data on the size of its operational nuclear stockpile, and British strategy provides for the possibility of increasing it.

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