Key facts
- NATO countries finalized a €27 billion deal to overhaul the alliance's military fuel transport system.
- The investment will modernize existing fuel storage and distribution infrastructure and support new facilities like pipelines.
- The deal aims to ensure NATO forces have necessary energy supplies for warfighting readiness.
- Turkey dropped its opposition to the agreement after negotiations.
- The alliance also agreed to increase its common funding budget to up to €6.5 billion for the upcoming year.
NATO countries have agreed on a €27 billion deal to overhaul the alliance's military fuel transport system, a move aimed at enhancing warfighting readiness and preparing for potential conflict with Russia. The multi-decade investment will modernize existing infrastructure and establish new facilities, including pipelines, in eastern and southeastern Europe.
The agreement was finalized by NATO's 32 ambassadors during a meeting ahead of the summer break, following Turkey's withdrawal of its last-minute opposition. This comprehensive revamp of the alliance's 10,000-kilometer Cold War-era pipeline network is considered NATO's largest-ever commonly funded scheme and could take up to 30 years to complete.
In addition to the fuel network overhaul, NATO members also agreed to increase the common funding budget to up to €6.5 billion for the next year. NATO Secretary-General Mark Rutte described the deal as a "historic step" in modernizing the alliance's infrastructure. The final approval came after intense efforts by Rutte and a directive from NATO's top commander, U.S. Gen. Alexus Gregory Grynkewich, emphasizing the deal's necessity.