NATO discusses plan to fund Ukraine with €40 billion a year

NATO member states are currently discussing Secretary General Jens Stoltenberg's idea for a €40 billion-a-year funding plan for Ukraine, although some allies remain sceptical.

Source: Bloomberg’s sources familiar with the discussions, as reported by European Pravda

Details: The agency wrote that several NATO member states are unwilling to commit to specific multi-year spending on military assistance to Ukraine, which would provide more predictability in the long term.

The sources said that countries are now divided on how to make these commitments work for future years.

Some allies are wary of formalising commitments with a specific number and simply want to pledge to continue to provide support at the same level, the sources said.

Meanwhile, others hesitate to reveal exact figures for their contributions, fearing that it could reveal the true extent of their assistance to Ukraine.

Although many details remain to be agreed, including accounting, the allies may be able to reach a deal if the €40 billion in aid to Ukraine is deducted from NATO's existing commitment to spend at least 2% of GDP on defence, the sources said.

However, this could lead to a reduction in the allies' own defence spending, especially if finance ministries do not agree to raise the overall level of spending.

In addition, NATO allies are still agreeing on the wording for a leaders' statement at the summit in July that will describe Ukraine's progress towards joining the alliance.

While an invitation is unlikely this year, the US and Germany are opposed to calling Ukraine's path to NATO membership "irreversible" and instead want to present the entire package as a "bridge to membership," the sources said.

In addition, the sources report that the allies are discussing the establishment of a special representative in Kyiv to oversee the international coordination of arms supplies and training for the Ukrainian Armed Forces under the auspices of NATO.

Background:

• The media reported earlier that Stoltenberg abandoned plans to create a five-year military aid fund for Ukraine after facing opposition from the Allies.
• At that time, the NATO Secretary General presented a new proposal, according to which Allies would commit to spending at least €40 billion a year on lethal and non-lethal assistance to Ukraine.
• However, this plan was not agreed upon during a meeting of NATO defence ministers in Brussels. Stoltenberg said that the allies would continue to coordinate their position on this issue before the summit in Washington.

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