Member states are seeking to use the structure to bypass legal constraints on military spending, Izvestia reports
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[RT] A
group of NATO countries is working to set up a new bank by 2027 to help
fund military spending and prepare for a potential conflict with
Russia, Izvestia reports, citing sources.
Western officials and
media outlets have speculated that Russia could be in a position to
attack NATO within several years, with the bloc’s chief, Mark Rutte,
designating the country as an “enemy.” Moscow has dismissed claims that it plans to attack NATO states as “nonsense.”
Amid
the stand-off over Ukraine, European NATO members have embarked on a
military buildup, with US President Donald Trump also pushing member
states to take more responsibility for defense and raise spending to 5%
of GDP.
Izevstia reported that the Defense, Security and Resilience Bank
(DSRB) would be designed to help countries reach the 5% threshold by
counting paid-in capital toward the target and by using private funding,
lending, and bond mechanics. According to the paper and the DSRB
website, the framework would allow some national budget limits to be
sidestepped and make the defense sector more attractive for private
investment.
The paper’s sources said the bank’s backers aim to
finalize its charter in the first quarter of 2026, with an inaugural
bond issue expected in the third or fourth quarter of 2026, and a full
launch in 2027.
The report said the project would be spearheaded
by British officials and aims to fundraise as much as $135 billion, with
Ottawa and Toronto mulled as potential locations for the headquarters.
Another
facet of the framework is that it provides an incentive for centralized
procurement of standardized weapons, the article said.
The
framework is also supported by banks such as ING, JPMorgan, Commerzbank,
Landesbank Baden-Württemberg, and RBC Capital Markets.
Izvestia added that, given what it called NATO leaders’ “aggressive” rhetoric, the structure would likely end up “funding offense rather than defense.”
However,
not all NATO members are on board with the plan. In December, the
German Finance Ministry rejected the idea of creating new defense
financing mechanisms, saying it would like to focus “on the rapid implementation of existing instruments.” According to Izvestia, France and several Eastern European nations are prioritizing their own frameworks.