NATO approves €27 billion fuel infrastructure plan, raises funding

NATO has approved its 2027–2031 Common Funding Resource Plan, outlining the Alliance's investment priorities for the next five years and increasing common funding to support its growing defence ambitions.

The Alliance said the decision, adopted by the North Atlantic Council on July 22, includes the approval of the 2027 funding ceilings for NATO's Military Budget, Civil Budget and Security Investment Programme, raising total common funding to up to €6.5 billion, Caliber.Az reports.

The Council also endorsed the €27 billion NATO Fuel Supply Chain Capability Programme, aimed at modernising the Alliance's fuel storage and distribution infrastructure.

The programme will finance new facilities, including pipelines in NATO's eastern and southeastern member states, to ensure allied forces have reliable energy supplies and maintain wartime operational readiness.

According to NATO, the Common Funding Resource Plan is designed to align the Alliance's shared resources with its increased level of ambition amid a more challenging security environment.

Common funding supports NATO's military capabilities, critical infrastructure, operations and missions, military readiness, as well as the Alliance's consultation, command and control systems.

The plan also allocates resources for continued support to Ukraine, including the NATO Security Assistance and Training for Ukraine (NSATU) initiative and the NATO-Ukraine Joint Analysis, Training and Education Centre (JATEC).

NATO's 32 ambassadors have approved the programme, clearing the way for what is expected to become NATO's largest and most expensive commonly funded infrastructure project.

The agreement was endorsed during the ambassadors' final regular meeting before the summer recess after Türkiye dropped a last-minute attempt to delay the compromise, two NATO diplomats told POLITICO on condition of anonymity because the discussions were confidential.

The programme, which could take up to 30 years to complete, includes dozens of projects ranging from pipeline upgrades to the construction of new fuel storage facilities aimed at strengthening NATO's logistics network.

"A stronger NATO is in the pipeline," one of the diplomats said.

Member states had previously been divided over the project's high cost, while some expressed concern that it would commit the Alliance to long-term fuel infrastructure investments. Those objections were later withdrawn.

Speaking at NATO's summit in Ankara earlier this month, Secretary General Mark Rutte described the agreement as a "historic step," saying the programme would modernise the Alliance's existing fuel storage and distribution infrastructure.

Although allies had reached a political understanding before the summit, Türkiye reportedly sought to secure faster funding for its own projects and attempted to delay the final agreement.

According to one of the diplomats, Rutte's push to secure consensus, together with support from NATO's Supreme Allied Commander Europe, U.S. Gen. Alexus Grynkewich, helped persuade member states, including Türkiye, to back the plan.

Türkiye's permanent representation to NATO did not immediately comment on the report.

By Bakhtiyar Abbasov