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Kyiv asks NATO to classify support for Ukraine as defense spending — Bloomberg

Kyiv asks NATO to classify support for Ukraine as defense spending — Bloomberg Photo: NATO will spend 5% of GDP on defense, part of which will go to Ukraine (Getty Images)
Author: Liliana Oleniak

NATO negotiates with members on what will be allowed in the new defense spending target of 5% of GDP, Bloomberg reports.

The overall spending target would be 5% of GDP, with 3.5% for hard defense spending and 1.5% for defense-related spending.

According to the agency's source, Kyiv insists that aid to Ukraine be counted toward this 1.5%. This would allow the country to compensate for the fact that NATO is not currently discussing the renewal of last year's €40 billion pledge to Ukraine.

Separation of goals

According to the document, other expenditures that could qualify for a 1.5% share would be spending on critical infrastructure protection, non-military intelligence agencies, and space-related activities.

A broader definition of what counts as defense-related spending would make it easier for countries to meet the target, as some countries have lobbied to include expenditures such as counterterrorism.

NATO Secretary General Mark Rutte said this week that he expects allies to endorse the new 5% target.

Negotiations are expected to continue in NATO's Policy and Planning Committee on June 28. The proposal is subject to change and will be the basis for discussion among allies.

Infrastructure spending, especially for military mobility purposes, is likely to be included. These costs will have to contribute to the defense plans of the military alliances or allow for the use of core defense spending.

Southern NATO countries insist on the inclusion of costs related to the fight against terrorism. The inclusion of dual-use goods, in addition to infrastructure, must also be agreed upon.

New goal

US President Donald Trump demanded that allies spend 5% for the first time earlier this year after he threatened to withdraw from the alliance or defend only those allies who spent enough on defense.

This figure was seen as unrealistic when he first mentioned it, but European allies and Canada came to realize that their spending had to increase dramatically.

Only 23 of the 32 allies have met the current spending target of 2%, according to NATO's annual report released in April. But all of them are expected to reach it by the summer.