US and NATO Discuss New Funding Mechanism for Arms Transfers to Ukraine

Ukrainian Military/PHOTO via Instagram @uaf_general_staff

JAKARTA - The United States and NATO are developing a new approach to supplying weapons to Ukraine, using funds from NATO countries to finance the purchase or transfer of US weapons.

This renewed transatlantic cooperation on Ukraine comes amidst US President Donald Trump's frustration with Moscow's continued attacks on its neighbor.

Trump, who initially took a softer stance toward Russia in his efforts to end the more than three-year war in Ukraine, has now threatened to impose tariffs and other measures if Moscow does not show progress in ending the conflict by August 8.

The US president said last month that his country would supply weapons to Ukraine, funded by European allies, but did not elaborate on how this would be done.

NATO countries, Ukraine, and the United States are developing a new mechanism that would focus on providing US weapons to Ukraine from Ukraine's Priority Requirements List, known by the acronym PURL, sources told Reuters on Saturday, August 2.

Ukraine will prioritize weapons it needs totaling about $500 million, and NATO allies—coordinated by NATO Secretary General Mark Rutte—will then negotiate among themselves about who will contribute or pay for the items on the list.

Through this approach, NATO allies hope to provide Ukraine with $10 billion worth of weapons, said an unnamed European official.

It is unclear how long they expect to supply the weapons.

"That's the starting point, and it's an ambitious target that we're working towards. We're on track. We support that ambition. We need that much," the European official said.

NATO declined to comment. The White House, the Pentagon, and the Ukrainian Embassy in Washington did not respond to requests for comment.

Russian forces are gradually advancing against Ukraine, taking control of a fifth of Ukrainian territory.

If NATO countries decide to donate weapons to Ukraine, the mechanism would allow the country to effectively bypass lengthy US arms sales procedures to replenish its own stockpiles, said an unnamed US official.

However, NATO countries would have to pay the US upfront for faster replenishment.

The money would be deposited into a US-held account, likely at the US Treasury, or into an escrow fund, although the exact structure remains unclear.

NATO countries also have the option of paying the United States to send weapons directly to Ukraine. In this case, payments could be made through NATO or directly to the US Department of Defense, said the second source, who spoke on condition of anonymity.

This would be in addition to the United States' own efforts to identify weapons from US stockpiles to send to Ukraine under the Presidential Withdrawal Authority, which allows the US president to draw from current arms stocks to assist allies in emergencies.

At least one tranche of weapons for Ukraine is currently being negotiated under the new mechanism, two sources said, although it is unclear if any money has been transferred.

Trump's Republicans in Congress have introduced the PEACE Act.

The legislation aims to create a fund in the US Treasury that allies can use to deposit funds to replenish US military equipment donated to Ukraine.

Ukraine's needs remain consistent with previous months—air defense, interceptors, systems, rockets, and artillery.

The latest statement on Ukraine's needs was delivered at the Ramstein conference on July 21, led by EU allies, including the UK.