NATO to count Ukraine aid as defense spending - Euractiv

Now, new purchases of military equipment specifically for Ukraine, as well as investments in Ukraine’s defense industry, will be counted by NATO countries as defense spending under the Alliance’s new budgetary targets.

According to Euractiv, the deal is still subject to revision before NATO’s annual summit takes place on June 24–25 in The Hague. At the summit, a general agreement to raise defense spending targets from the current 2% of GDP is expected to be approved. However, the final details of these targets will likely be developed later.

The current NATO proposal calls for each member to spend at least 5% of its GDP on defense annually: 3.5% on core military needs (equipment and personnel), and 1.5% on cyber defense, infrastructure, or resilience-related efforts.

Sources note that only new spending on military support for Ukraine will be counted under the second category (1.5%). Donations from existing stockpiles will not count toward these targets to avoid double-counting equipment already purchased.

Equipment previously transferred to Ukraine from NATO arsenals was already counted as part of regular defense spending when it was first acquired. However, future purchases made to replenish that equipment will count toward the 3.5% core defense target. Non-military aid to Ukraine will not count as defense spending.

In short, the new arms purchases for Ukraine or investments in Ukraine’s defense industry count toward the 1.5%, replacing previously donated arms counts toward the 3.5%, and donating old weapons from stock or giving humanitarian aid does not count at all.

Two sources said the move to count financial support for Ukraine's military as NATO defense spending makes sense, since arming Ukraine has a direct and positive impact on the Alliance’s security.