US and NATO launch new $ 500 million tranche system to fast-track weapons deliveries to Ukraine
The United States and NATO are developing a novel financing mechanism that would allow NATO countries to pay for American weapons transfers to Ukraine, Reuters reported on 31 July, citing three sources.
The initiative comes as President Donald Trump has expressed growing frustration with Russia’s continued attacks on Ukraine. Trump, who initially adopted a more conciliatory approach toward Moscow while attempting to end the three-year war, has now threatened to impose tariffs and other measures if Russia shows no progress toward ending the war by 8 August.
“The president said last month the US would supply weapons to Ukraine, paid for by European allies, but did not indicate how this would be done,” Reuters reported
The new mechanism centers on the Priority Ukraine Requirements List (PURL), a catalog of American weapons systems. Under the proposed structure, Ukraine would prioritize needed weapons in tranches of approximately $500 million each. NATO allies, coordinated by Secretary General Mark Rutte, would then negotiate among themselves to determine funding responsibilities for specific items.
“That is the starting point, and it’s an ambitious target that we’re working towards. We’re currently on that trajectory. We support the ambition. We need that sort of volume,” a European official told Reuters, speaking on condition of anonymity.
The mechanism aims to deliver $10 billion worth of arms to Ukraine, though the timeframe remains unclear. A senior NATO military official described the initiative as “a voluntary effort coordinated by NATO that all allies are encouraged to take part in.”
The system includes a NATO holding account where allies can deposit funds for weapons purchases, subject to approval by NATO’s top military commander. According to a US official, money would be transferred to a US-held account, possibly at the Treasury Department, or to an escrow fund, though the exact structure remains under development.
For NATO countries choosing to donate weapons directly, the mechanism would allow them to bypass lengthy US arms sales procedures when replenishing their own stockpiles, Reuters reports.
The new system would operate alongside existing US efforts under the Presidential Drawdown Authority, which allows the president to transfer weapons from current American stockpiles to assist allies during emergencies.
At least one weapons tranche is currently under negotiation through the new mechanism, according to two sources, though it remains unclear whether any funds have been transferred yet.
Trump’s Republican allies in Congress have introduced the PEACE Act, legislation designed to create a Treasury Department fund where allies could deposit money to pay for replenishing US military equipment donated to Ukraine.
Ukraine’s requirements remain consistent with previous months: air defenses, interceptors, missile systems, rockets, and artillery. The most recent statement of needs came during a 21 July video conference of Ukraine’s allies in the Ramstein group, now led by Britain and Germany.
Russian forces continue their gradual advance against Ukraine and currently control approximately one-fifth of Ukrainian territory.
NATO headquarters in Brussels declined to comment on the mechanism. The White House, Pentagon, and Ukrainian embassy in Washington did not respond to Reuters’ requests for comment.
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