NATO’s Stoltenberg cancels $108 billion Ukraine support fund

Jens Stoltenberg in Kyiv on April 29, 2024
Jens Stoltenberg in Kyiv on April 29, 2024

NATO Secretary General Jens Stoltenberg has abandoned a plan to create a €100 billion ($108 billion) fund to support Ukraine, Bloomberg reported on June 7, citing sources.

Instead of creating a five-year fund, Stoltenberg is asking countries to maintain their current contributions to Ukraine. The NATO chief had previously faced criticism from Alliance members.

Under the new proposal, allies would need to spend at least €40 billion ($43.2 billion) a year on lethal and non-lethal aid for Ukraine, Bloomberg reports. NATO members will discuss this proposal during a meeting in Brussels next week. These amounts would match the average annual contributions of countries since Russia's invasion in 2022, according to sources.

Read also: Stoltenberg arrives in Kyiv largely empty-handed — opinion

NATO will determine the donation amount for each country based on a percentage of its gross domestic product. Sources note that the new proposal aims to "provide more transparency about what allies give Ukraine." The United States will account for about half of the aid, with the rest coming from the other 31 NATO members.

On May 27, NATO allies demanded that Jens Stoltenberg provide more clarity on the €100 billion plan to support Ukraine.

Read also: Ukraine can prevail with sustained Western support — Stoltenberg

Reuters reported on May 30 that NATO Secretary General Stoltenberg intends to ask allies to allocate about €40 billion a year for military aid to Ukraine. Such funding would at least sustain the current levels of military support provided by the allies, according to a NATO source.

Five-year €100 billion aid fund for Ukraine

Stoltenberg proposed creating a five-year, $100 billion fund from ally contributions for Ukraine as part of a package to be signed by alliance leaders at a summit in Washington in July, Bloomberg reported on April 2.

Read also: Ukraine’s trust in NATO undermined by aid delay — Stoltenberg

After talks at NATO headquarters on April 4, Ukrainian Foreign Minister Dmytro Kuleba said the Alliance currently has no tools to provide Ukraine with money to create the proposed fund. He expressed doubt about the plan's chances of being implemented.

Bloomberg reported that some NATO allies are skeptical about securing additional money for a Ukraine support fund. Many believe NATO "should not make promises to Ukraine that it cannot fulfill."

Hungarian Foreign Minister Péter Szijjártó said on May 8 that his country would not participate in the €100 billion NATO fund for Ukraine, calling Stoltenberg’s plan "crazy."

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