NATO and US create new funding plan for Ukraine’s weapons
NATO and the United States have joined forces to implement a new funding system to deliver military aid to Ukraine, using money from NATO members to pay for American-made weapons, according to The New Arab via Reuters on August 2nd.
The announcement comes amid ongoing Russian advances in Eastern Ukraine. President Donald Trump, increasingly frustrated by the lack of progress toward peace, has warned that Moscow must take tangible steps to end the conflict by August 8th or face new tariffs and a broader set of penalties.
Trump had previously stated that European allies would pay for US weapons sent to Ukraine, but the specifics remained unclear until now. US military aid to Ukraine briefly paused due to tensions between President Trump and Ukrainian leader Volodymyr Zelenskyy, but shipments have since resumed as cooperation continues amid the ongoing conflict.
Under this system, Ukraine will submit requests for military aid in $500 million instalments, organised through a prioritised list known as PURL (Priority Ukraine Requirements List). NATO members, coordinated by Secretary General Mark Rutte, will then decide who will fund or donate the requested equipment.
The mechanism includes a NATO-managed fund where member states can voluntarily deposit money to support Ukraine’s arms needs. A senior NATO official described it as a coordinated but non-mandatory effort that encourages participation from all allies.
The ultimate goal is to provide $10 billion worth of arms, although no definitive timeline has been set for reaching the target.
The key advantage of this system is that NATO countries can more quickly replace weapons they donate to Ukraine. By bypassing the usual delays associated with US arms sales, participating countries can replenish their arsenals faster.
The funding is expected to be managed through either a US Treasury account or an escrow fund, though the exact setup is still being finalised. This new approach will work alongside the existing US Presidential Drawdown Authority, which allows the president to send weapons directly from US stockpiles during emergencies.
Additionally, American lawmakers have introduced the PEACE Act, which would create a US Treasury fund where allies can deposit money to help replenish US military equipment sent to Ukraine.
Ukraine’s top military requests—air defence systems, interceptors, rockets, and artillery—remain consistent.
The New Arab via Reuters, Maghrebi.org
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