Izvestia reports that member states are seeking to utilize the structure to circumvent legal restrictions on military spending
A group of NATO countries is endeavoring to establish a new bank by 2027 to assist in financing military spending and preparing for a possible conflict with Russia, Izvestia reports, citing sources.
Western officials and media outlets have speculated that Russia might be able to attack NATO within a few 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.”
In the midst of the stand-off over Ukraine, European NATO members have initiated a military buildup, and US President Donald Trump has also been pushing member states to take more responsibility for defense and increase 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 towards the target and by using private funding, lending, and bond mechanics. According to the paper and the DSRB website, the framework would enable some national budget limits to be bypassed and make the defense sector more appealing 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 led by British officials and aims to raise as much as $135 billion, with Ottawa and Toronto being considered as potential locations for the headquarters.
The article also said that another aspect of the framework is that it provides an incentive for centralized procurement of standardized weapons.
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 in favor of the plan. In December, the German Finance Ministry rejected the idea of creating new defense financing mechanisms, stating that 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.