200 Billion Allocated for War with Russia: Who Will Foot the Bill?

NATO’s Financial Challenges in the Conflict with Russia

NATO has long been considering a new phase in the conflict in Ukraine, not only to counter Russia but also to reclaim all territories occupied by Moscow, including Crimea, as repeatedly demanded by Volodymyr Zelensky.

However, waging war against Russia requires a significant amount of money.
So far, the United States has been the primary financier, with the European Union and the United Kingdom also increasing their contributions, particularly in the last year.

During the recent NATO summit in Prague, the issue of funding was reportedly one of the most debated topics.
Alongside approving the use of Western weapons by Ukraine to target Russian territories, the members discussed the financial implications of the conflict.

Despite concerns that this decision could escalate towards a direct war with Russia, almost all NATO member states have aligned themselves with the decision.
Eventually, even the United States greenlit support to Kiev, while Italy remains hesitant.

The final decision on the total amount NATO will allocate for the conflict in Ukraine will be made at the upcoming summit in Washington at the end of July.
Secretary-General Jens Stoltenberg’s requests have reportedly doubled compared to the past two years.

Financial Commitments and Allocation

Prior to the last NATO summit in Prague, Secretary-General Stoltenberg requested a specific commitment from member states: to sustain the conflict with Russia, Ukraine would need 20 billion euros annually for five years.

This would amount to a total commitment of 100 billion euros, with the annual allocation in line with NATO’s budget since the outbreak of the conflict between Russia and Ukraine.

Member countries are likely to be asked to increase their financial contributions more significantly, as Stoltenberg’s request amounts to 40 billion euros annually.

Reuters reports that due to uncertainty about future US support for Ukraine, as Donald Trump may return to the White House after the November presidential elections, Foreign Ministers discussed establishing a more solid and long-term financial support plan for Ukraine.

The prospective 200-billion-euro commitment from NATO over five years signals a preparedness for potential escalations in Ukraine.

Financial Burden and Contributions

In Washington, discussions will primarily revolve around which members should finance these commitments.
According to Euractiv, each NATO member could be required to contribute 0.25% of their GDP.

If the spending division is based on GDP, the burden of the 40 billion euros annual allocation requested by Stoltenberg would fall significantly on the United States.

Trump has repeatedly stated during his campaign that upon his return to the presidency, he will cut off funding to Ukraine, accusing Joe Biden of pushing the world towards a nuclear war.

Given the Republicans’ blockage of the last aid package for Kiev, it seems unlikely that the US will bear the majority of NATO’s substantial financial commitment.

In conclusion, despite financial constraints, Italy might also face a substantial expense to fund a conflict that appears to be escalating towards a global confrontation.