NATO is discussing a plan to finance Ukraine for 40 billion euros a year

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

Source: Bloomberg interlocutors familiar with the discussions, Yevropeiska Pravda

According to the agency, 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.

According to the sources, countries are now disagreeing on how to make these commitments work for future years.

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

Meanwhile, others are wary of publishing exact figures for their contributions, fearing that this could reveal the true extent of their assistance to Ukraine.

Although many details remain to be agreed upon, 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 defense, the sources said.

However, this could lead to a reduction in the allies' own defense 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 July summit that will describe Ukraine's progress toward membership.

While an invitation is unlikely again 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," sources say.

Author - Dmitriy Levchenko, 27/06/2024