etisalat business plan change

Etisalat’s pivot to e& – a transformation success story

As business transformation efforts go, Etisalat Group’s transformation over the last few years from a telecoms company founded more than four decades ago in the UAE to e& – a technology and investment conglomerate with a global influence in digitalisation is nothing short of visionary.

Armed with a strategy to diversify and accelerate resilient long-term growth, by unlocking potential through its investment in state-of-the-art infrastructure and digital transformation, the telco Group’s pivot to tech is certainly paying off.

The tech conglomerate, now present across 16 countries, achieved remarkable business growth and unwavering stakeholder confidence in 2022, with its portfolio of brands (including flagship telecoms brand EtiIsalat by e&) now exceeding a total value of US$14bn – and was recently named as the most valuable portfolio of telecom brands in the Middle East and Africa region, and among the top three in the world, according to the 2023 Brand Finance Global 500 Report, released at WEF, Davos.

e&’s transformation success story comes as “the telecommunication industry continues to struggle with commoditisation”, David Haigh , Chairman and CEO of Brand Finance says, pointing to e& as a telecom operator that has got it right.

“e& has taken the bold and necessary step to reposition its brand identify to unlock new opportunities and services,” says David. “The ongoing brand evolution enhances the ability to branch out into new services as well as stepping up from being a strong regional player to being a brand with global aspirations.”

From telcos to techcos – diversification imperative for telecom operators

The continued emergence of technology is creating a new type of player in the telco industry – a Techco – a telco operator that has transformed into a tech-driven operators by providing tech-based products and services – and e& is at the forefront of this change.

As e& Group CEO Hatem Dowidar told Telcom Review last year, so much has changed in the past decade in the roles of telecom operators and internet tech companies.

“Where telcos focused their attention on building the best network infrastructure and acquiring spectrum based on geographical demarcations and a highly regulated environment, internet tech companies used any form of network (cable or wireless) to develop applications and provide these services to their customers.

“Given the new reality of the disrupted business landscape where technology and the needs of our customer segments are constantly evolving, it was critical to refine our business model and ultimately diversify our revenue streams and add more value.”

Business diversification has been at the heart of telecom operator strategies for several years now as operators experience a stagnating connectivity market, and their core business becomes increasingly commoditised.

Aware of their predicament, operators around the world, like e&, are exploring ways to reignite growth, including establishing new businesses to reach beyond connectivity.

However, new business-building for many telco operators is not proving easy. A recent McKinsey survey of 50 senior executives from telco companies around the world showed that 77% had embarked on more than five business-building initiatives over the past 10 years. And while half of the execs said their new businesses were showing healthy profits, a quarter said the initiatives were not yet profitable, while a further quarter had net profitability of less than 10%.

e& transformation – collaboration and a growth mindset key

e& is one of a growing number of ou-tperformers demonstrating that it can be done – with the Group making significant strides in AI, blockchain, VR, AR, the IoT, cloud computing, and technologies supporting the emergence of the metaverse.

According to Dowidar, the Group’s transformation has involved adopting a growth mindset, creating a future-ready business model, pursuing strategic partnerships and M&As more actively and setting its sights on new opportunities that the digitalisation of sectors brought.

This has led to the building of multiple revenue streams through specialist business pillars, including Etisalat by e&, e& international, e& life, e& enterprise and e& capital.

Dowidar said that e& had made significant strides in Artificial Intelligence (AI), blockchain, Virtual Reality (VR), Augmented Reality (AR), the Internet of Things (IoT), cloud computing, and technologies supporting the emergence of the metaverse.

"As we help usher in the next wave of digital tech transformation, we will continue exploring new business models in the digital space. Our strategic priority is to drive new partnerships and investment opportunities that will accelerate the growth of all our business verticals.”

Collaboration with internet tech companies has been core to the company’s transformation, a necessary step says Dowidar in bringing exceptional digital experiences jointly to the table. The Group has already orchestrated such collaboration for its enterprise customers through its end-to-end solutions in IoT, AI, cybersecurity, as well as cloud and 5G.

Its partnerships with world-renown ed companies like Microsoft and Meta have been game-changing, Dowidar said, making it possible “to compound growth while designing seamless digital experiences for customers and contributing to society”.

Its partnership with Microsoft for example, which offers customers the benefits of using reliable, cost-effective public cloud solutions, is a perfect example of business integration that combines one of the world’s fastest 5G networks from 3& with Microsoft’s technology ecosystem based on cloud solutions, AI services and data services.

Meanwhile, the company is leveraging Meta’s technologies through the use of e&’s advanced 5G network combined with a multitude of technologies to help customers embrace a digital-first lifestyle more efficiently.

“Guided by our 46-year legacy of pushing the boundaries of technology and service excellence, we have emerged as an inspiring global technology conglomerate; this international recognition makes us extremely proud,” Dowidar says.

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Etisalat will now be 'e&' as UAE telecom giant transforms into 'global tech conglomerate'

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Transition to 'e&' signals telco's ambitions to be a true technology giant

Dubai: Etisalat, the UAE telecom giant, has launched the next stage of its evolution – and the first step is being known as ‘e&’. It will mark the Group’s transformation into a full-scale “global technology and investment conglomerate”.

This was confirmed by Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister of the UAE and Minister of Presidential Affairs.

“The transformation of e& from a telecom company founded more than four decades ago in the UAE into a global influence in digitalisation highlights its role in upholding the UAE’s sustainable economic development and diversification plans,” Sheikh Mansour said in a statement. “We commend e& for being the national champion that steers its global digitalisation leadership through pioneering advanced technologies, advancing ICT infrastructures, and fuelling geographic expansions while unlocking value.”

Heavyweight on ADX

The announcement, which was made after trading hours, will place the company’s stock in the limelight tomorrow (February 24). It has a Dh291.34 billion market cap on ADX, and the stock currently trades at Dh33.5. Early last year, the Group allowed foreign shareholders to hold up to 49 per cent.

‘Capitalise’ on new opportunities

The intent is to be fit and ready to take on new prospects in a “fast-evolving business landscape”. Some of that is already being seen, with Etisalat – or e& - joining in the launch of a Dh2.3 billion digital bank – Wio - along with FAB, ADQ and Alpha Dhabi.

In the new avatar, The Group’s telecom operations will retain the previous branding identity. Simultaneously, it will be “upholding the Group’s rich telecoms heritage, bolstering the Group’s strong telecoms infrastructure and maximising value for its customer segments…”.

Etisalat has more than 155.4 million subscribers spread over 16 countries in the Middle East, Asia and Africa.

This is a milestone in the history of the Group, and a new era where we reaffirm our commitment to deliver outstanding customer experiences and maximise value for our shareholders. To ensure that the next chapter of our journey is a success, we made the decision to realign our business model so that we can stay agile and fit for the future - Jassem Mohamed Bu Ataba Alzaabi, Chairman of e&

Other ‘pillars’

Apart from its core telecom services, the other key operational lines will be:

• e& life, which is focused on “enhancing customer delight by becoming an integral part of the lives of its customers”. The division has already designed plans for deliver next-generation technologies and digital experiences that will “bring the world to the customers’ fingertips through smart connectivity platforms in entertainment, retail and financial services”.

• e& enterprise will be the unit taking on the digital transformation of governments, corporates and enterprises. Through its solutions in cybersecurity, cloud, Internet of Things (IoT) and Artificial Intelligence (AI),, e& enterprise will “create real business value as it continues to leverage on its expertise as a digital managed company having the strength and reach of a global trusted partner”.

Then there is the e& capital, which will take the lead in driving new growth prospects for the Group, most likely through mergers and acquisitions. The grand plan is to invest in “ideas that make the future”.

Already, some of the reshaping at the telecom company was apparent. The Group started selling insurance products as part of a calculated move to expand into financial services solutions. The launch of a digital bank is also part of that grand strategy.

Solid foundations

"Our evolution is built on the solid foundations of several historical achievements, multiple milestones and robust financial performance, highlighting our global technological leadership and our confidence in leading change for growth," said Jassem Mohamed Bu Ataba Alzaabi, Chairman of e&. "During this time, we have also worked tirelessly to ensure that our solutions positively impact people’s lives at every touchpoint. We are now ready to be the future-focussed nexus that will drive more positive change for our customers and shareholders through our robust expertise.”

The makeover to e& comes as the Group commits significant investments into expanding the 5G networks in the UAE. Market sources say that the two telecom providers in the UAE have been steadily clocking subscribers for the super-fast telecom and data services.

Etisalat is expected to announce its full-year 2021 results this week, and analysts are expecting a solid set of numbers. They will be particularly keen on the medium-term plans as well as planned capex forecasts.

“We will continue to identify new growth opportunities, take full advantage of strong partnerships and maintain our edge as the global technology investment conglomerate that makes a difference in people’s lives,” said Hatem Dowidar, Group CEO.

Our robust transformation plans will focus on running our business operations more efficiently, diversifying our revenue streams as well as helping our enterprise customers achieve their digital transformation goals adeptly - Hatem Dowidar, Group CEO of e&

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Keep your eyes on the goal: Execute your business plan

09 Apr 2022

In business, words without execution is useless. Any goals or plans must be accompanied with realistic strategies and actions. For without them, they will remain empty words better reserve for literature.

Business leaders say planning a strategy is 25 percent of the task. The rest is execution. And, so it goes without saying that, if not properly carried out, a plan, no matter how great and exciting it may sound, will not make things work.

This is not to say, however, that we need to reinvent the wheel – rather, we need to keep it rolling to get the business going. In this context, the thing keeping the wheel going is the business plan.

Here are the keywords: 

Some confuse a business plan with a goal, which actually are intertwined, experts say. The business plan sets the direction; the goal identifies the targets to be met at every step of the way. This inter-relationship does away with the old practice of creating a plan and expecting things to happen on their own. Goals make for a well-defined and structured assignment of tasks for each team member and as well identifies areas that may have been overlooked in the process of brainstorming.

Priorities and support measures

It is important that entrepreneurs know where their priorities are. Equally essential is keeping these priorities attainable and by this, the experts mean steering clear from setting too many so as not to strain resources – human and logistical. Lastly, priorities need support measures to make it happen.

An example would be expanding sales and marketing operations at a particular area based on research results. That being a priority would need logistical and manpower support. In tangible terms that could mean setting up a satellite office at the target expansion area, increasing presence both physically and on social media, putting knowledgeable and experienced people on board and rolling out a time-bound marketing plan.

As business gurus say: having too many priorities leaves deprives one of the element of being focused.

Key performance indicators (KPI)

These benchmarks should tell you how far you have been progressing, if at all. KPIs are measurable outputs complimenting each other toward a common goal: the success of the business plan.

It doesn’t end there. KPIs are assessed and evaluated regularly to identify areas that need to be improved and areas that are working well.

This practice ensures that the plan is actually continuously being harnessed and developed based on KPI assessment results, which identify what component of the overall plan is hamstringing the project, and thus needs adjusting or improving.

Communication

The importance of regular communication is immense. In this age of global digitalization and connectivity, it is impossible to fail in conducting regular communication with the employees and key people in the loop.

Communications ensures everyone in the team doing his role as regards the plan is on the same page – everybody is moving along; nobody is left behind. It synthesizes results and make possible a quick reaction in cases where a particular component of the business plan is hampered or even fails.

So, in real time context, this could go in the form of daily “morning alignments” in chat groups specifically set for the people involved in the business plan where every reports progress and follow-ups for the day. This provides for a certain level of measurability in gauging whether the plan is getting along and in what stage.

As things progress, those in the executive committee should hold monthly or quarterly meetings for evaluation purposes to identify problem areas and to brainstorm on whether the execution of the business plan needs to take a slightly different path. In other words, data accumulated from the daily alignment meetings would play a key role in setting forth whether the overall business plan is on the right track.

It’s a discussion on the plan’s strength and weaknesses as well as the opportunities that present themselves and threats that could bring the entire project down – SWOT.

Going back to the marketing expansion plan, this executive meetings should be able to identify what is going well; what is not turning out as expected; what are areas that can be favorable or speed up consummation of the business plan; and the threats – disgruntled staff, perhaps, even security – that could derail the plan.

Key product of regular executive committee evaluations is a one-page summary of the business plan’s progress for the employees. This is important in that it gives them a sense of being part of the whole undertaking and thus keeps them motivated and inspired. Just be conscious not to give out too much detailed information, especially company secrets.

Remember all these key words and you are good to go.  

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1. Prepare clear digital copies of your Trade License & Establishment Card

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4. Renew your mobile registration by updating the expired documentation listed under your Party ID

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How long does it take to renew documents for mobile registrations?

It takes 2 business days for our team to verify and approve your documents after you have uploaded your latest documents.

Why do I have to renew my mobile registration?

This is in line with the most recent regulatory requirements to ensure that your records are updated within our system. Failing to do so would impact your mobile-related activities.

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If your company documents are expired, you will not be able to place mobile orders such as SIM Transfer, Number Portability, SIM Replacement, New Activations or anything mobile-related until your documents are updated in our system. Furthermore, should this exceed the grace period of 60 days, your outgoing calls and data services will be impacted.

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“etisalat by e&” launched as the new brand identity for Etisalat UAE

21 jun 2022.

e& (formerly known as Etisalat Group) today unveiled “etisalat by e&” as the new brand identity for Etisalat UAE in line with the Group’s recent positioning as the global technology and investment conglomerate that digitally empowers societies.

The brand evolution comes at a time when the Group continues to accelerate its digitalisation leadership in line with its objectives for exploring new geographies and adjacencies and pursuing strategic partnerships and acquisitions.

Etisalat UAE has been a key enabler of the Group’s business growth, enabling the UAE’s Fiber Household Penetration leadership since 2016, maintaining market leadership in the UAE, constantly ranking as one of the most advanced mobile networks in the world, providing premium connectivity and supporting customers every step of the way through holistic digital-first offerings. It continues to lead the digitalisation conversation, driven by its robust UAE strategy that envisages it to be the digital telco that is a customer champion in a hyper-connected digital world.

Commenting on the brand change in the UAE, Hatem Dowidar, Group CEO of e&, said: “The evolution of Etisalat UAE builds on the solid foundations of its success as the Group’s growth engine since 1976 and signals the imminent change that our UAE telecoms business will undergo in keeping with its aspirations to deliver amidst a dynamic business landscape.

“With a progressive mindset for our brand and strategy, we will boost global customer satisfaction, achieve synergies of scale, expand our digital services and explore adjacent businesses. I am confident that the refreshed brand identity of Etisalat UAE encapsulates the dynamism of our journey ahead while remaining true to our commitment to making a bigger difference than ever imagined.”

Another exciting chapter for Etisalat UAE

Etisalat UAE is on a mission to “Grow”, “Transform”, and “Excel”. The technology leader has embarked on a new journey that predicates upon a shift in operating model, which

will support sustaining its leading position, while enhancing digital customer experience and operational agility.

As part of its new strategy, Etisalat UAE will grow core and digital services, by enriching consumers’ value propositions with digital services that cater for consumers’ new lifestyles and emerging demands beyond basic telecom services, including areas like gaming, health, and insurance. Moreover, Etisalat UAE will continue to act as the business trusted partner and advisor by enabling their connectivity and beyond connectivity requirements, which, in turn, will accelerate the digital economy and pivot new, sustainable demand in future-forward spaces like private networks, autonomous vehicles, and AI.

Superior customer experience is a foundational block in Etisalat UAE’s transformation into a digital telco. The company will harness the power of analytics to offer personalised experiences across all digital and physical channels. The step-change in experience will be enabled by a radical simplification in the operating model, which will power value creation in a more efficient and innovative manner.

Masood M. Sharif Mahmood, CEO of Etisalat UAE, said: “Etisalat symbolises the strong homegrown roots that we are proud of and will continue to treasure as the brand embarks on a new chapter of evolution. Our telecoms business has been the growth engine behind our company as we stay committed to the aspirations of the UAE leadership to be a leading ICT and technology hub.

“For more than four decades, we have been instrumental in building bridges that connected people, linking our past as a giant telco to becoming the digital telco of the future. Etisalat UAE’s refreshed brand identity as “etisalat by e&” signifies our strong technological capabilities coupled with our extensive telco expertise, and highlights our robust UAE strategy ambitions.

“As we uphold the e&’s rich telecoms heritage, our focus remains the same in this ‘connectivity renaissance’ era: maximise value for our customers and bring positive change to their lives in the age of digitalisation. We will go from strength to strength by successfully executing our UAE strategy to boost our digital telco strength as well as better align with our goals and future aspirations as a customer champion in a hyper-connected world.”

CEO of Etisalat UAE added: “Human capital is the main asset in our transformation; we will continue to drive talent development in the ICT sector while promoting a culture of innovation bravery. Etisalat UAE will remain the factory of technological leadership that serves the wider community and bridges the digital divide.”

Regardless of dynamic changes in the industry and in keeping with several achievements thus far, Etisalat UAE is set to stay agile and resilient in line with the Group’s mission to explore limitless possibilities for a bright, digital future.

Etisalat Group has changed its brand identity to e&, effective from 23 February 2022. Its strategy aims to accelerate growth through the creation of a resilient business model representing the Group’s main business pillars. The Telecoms business currently continues to be led by Etisalat UAE in e&’s home market and by existing subsidiaries for international operations, upholding the Group’s rich telecoms heritage, bolstering the strong telecoms network and maximising value for the Group’s various customer segments. Ramping up the digital services for individual customers to elevate their digital-first lifestyle, e& life brings next-generation technologies through smart connectivity platforms in entertainment, retail and financial technology. To enable the digital transformation of governments, large-scale enterprises and corporates,

e& enterprise focuses on maximising value through its end-to-end solutions in cybersecurity, cloud, Internet of Things (IoT) and Artificial Intelligence (AI), as well as deploying mega projects. e& capital allows the Group to focus its efforts on driving new mergers and acquisitions while maximising shareholder value and strengthening global presence.

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Switch to business, switch your personal mobile plan to a business plan..

Switch from your personal mobile plan to a business plan in just a few simple steps. All you need to do is submit completed copies of the below documents when you want to switch.

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• Make a simple and easy switch to Business.

1 ⚊ B-Digital Provides You A Wide Range Of Local Minutes, Mobile Internet Along With Free Company Minutes And SMSs That You Can Share & Distribute Among Your Employees

2 ⚊ Offering You A Full Digital Experience Starting From Creating Your Business Account, Choosing The Suitable Bundle, Choosing Your Dials, And Receiving Your SIM Cards At Your Doorstep Or From The Nearest Store. All This Can Be Done Through Etisalat Business App

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Download etisalat business app. from here, create new account., choose new corporate account., choose b-digital., choose the desirable b-digital bundle., enter customer data., enter company’s data., upload your company’s documents., choose your dials., select delivery method., track your request., take control & manage your bundle..

1 ⚊ Prices Are Tax Exclusive

2 ⚊ Monthly Commitment Fees Are Fixed Regardless Of The Activated Lines

3 ⚊ Local Minutes For Etisalat Numbers And Other Operators

4 ⚊ Price For Extra Local Minutes Is 19 Pts. & 30pts For SMS

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Tax changes small business owners should be aware of as the tax deadline looms

FILE - A cash register is seen on the front counter at the Alpha Shoe Repair Corp., Feb. 3, 2023, in New York. As Tax Day, April 15, approaches, there are plenty of things small business owners should keep in mind when filing taxes this year. (AP Photo/Mary Altaffer, File)

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As Tax Day approaches, there are plenty of things small business owners should keep in mind when filing taxes this year.

April 15 is still the annual tax deadline for many small businesses although, unlike individuals, small businesses can have varying deadlines depending on the type of company, the state the taxes are filed in, and other factors. Quarterly estimated tax payments are generally required throughout the year. And certain types of small businesses had to file by March 15.

Since business tax filing is complex, most experts recommend small business owners work with a professional tax adviser rather than trying to file on their own or even with tax-filing software.

“Taxes should not be scary, especially when you have a certified tax professional or someone who is your trusted adviser,” said Amber Kellogg, vice president of affiliate origination and management at business consultancy Occams Advisory. “I always say you don’t go to the dentist to get your oil changed, and you certainly shouldn’t do (taxes) yourself unless you’re an expert.”

But even if small business owners aren’t filing taxes themselves, it’s still important to stay informed about any tax changes during the year. Here are things small business owners should consider as the April 15 deadline looms.

Consider an extension

Because of some pending tax legislation in Congress this year, Mitch Gerstein, senior tax adviser at accounting firm Isdaner & Co., said it might be a good idea to file for an extension. When you file an extension you still pay estimated taxes, but final paperwork isn’t due until September.

This gives your tax provider adequate time to file a return. And it’s cheaper to file an extension than an amended return, which costs more in administrative fees.

One reason Gerstein recommends an extension this year: a bonus depreciation write-off used by many small businesses is set to decrease for 2023. The bonus depreciation allowance was designed to spur capital purchases and it let businesses write off 100% of certain new and used assets in 2022. But beginning in 2023, that will decrease to 80% for used assets, dropping another 20% each year thereafter. However, a tax bill pending in Congress could restore the write-off to 100%. It’s rare that there is such a significant tax bill pending in Congress when taxes are due, Gerstein said.

Optimize your retirement plan

The Secure Act 2.0 passed by Congress in late 2022 gives small businesses some tax advantages if they offer a retirement plan. There’s a tax credit for small businesses starting new employee plans. The credit is up to 100% of the startup costs for adopting and maintaining a new 401(k) plan, capped at $5,000. There’s also a tax credit based on employer contribution, up to $1,000 annually per employee, over the plan’s first five years.

Changes in research and development write-offs

Scott Orn, chief operating officer of Kruze Consulting, works with startups backed by venture capital. Orn said the number one concern his clients are calling about is “Section 174,” a part of the tax code that involves writing off research and development costs.

In the past, companies were able to deduct 100% of research and development expenses from their taxable income. That was helpful because often that deduction meant the company was operating at a loss and wouldn’t have to pay taxes.

But starting in 2022 due to new legislation, companies have had to “capitalize” the expense – or spread it out over several years. That means they must now write off the expenses over five years for U.S.-based R&D, or 15 years for foreign R&D expenses.

Large and small companies alike are affected by the change, but small businesses are hurt the most, Orn said.

“(Small businesses) are the ones who are swinging into profit where they thought they were like safely losing money and not ever going to pay taxes for a while,” Orn said. “And that’s why it’s such a big surprise for them. It’s hurting people, it’s like it’s a lot of money these companies don’t have.”

Avoid underpayment penalties

Yet another reason for small business owners to use a tax professional is the fact that underpaying will cost more this year. In the past, underpayment penalties hovered at around 3%, but this year they’re more than double at 8% . That’s because the penalties are based on the federal short term interest rate plus three points, said Danny Castro, Florida Market Tax Leader at BDO USA, part of BDO Global, a global accounting network.

“The cost of underpayment is as high as it’s been in a long time,” he said.

One credit to skip: the ERC

At one time, the pandemic-era Employee Retention Credit seemed like a boon for small businesses. Designed to help small businesses keep employees during pandemic-era shutdowns, the generous credit let businesses file amended tax returns to claim the credit.

But that led to a cottage industry of scammers trying to entice small businesses to help them file for the credit – for a fee – even if they didn’t qualify. The IRS has launched several initiatives to claw back some money improperly given to businesses. To date, the IRS said 500 taxpayers have given back $225 million via a voluntary disclosure program, which ended on March 22, that let small businesses who thought they received the credit in error give back the money and keep 20%. And 1,800 businesses have withdrawn unprocessed claims totaling $251 million.

Get organized, stay organized

The best thing small businesses can do to help their tax advisers file their taxes is stay organized. A shoe box full of receipts isn’t helpful when trying to file timely taxes. Owners should log receipts in an orderly database they can turn over to their adviser. And stay on top of quarterly estimated payments.

“(Small business owners) need to be able to keep accurate records throughout the year and not have to go back in April and go, gosh, what what was this receipt for,” said Occams Advisory’s Amber Kellogg, “Keeping those, accurate records is very, very important.”

This story has been corrected to show that BDO USA is part of BDO Global, not BBO Global.

NATO's plan to Trump-proof Ukraine aid shows just how worried US allies are about the future of American leadership

• NATO's secretary general is proposing a plan for the alliance to control future aid packages.
• The plan would have the US step aside from leading the group that coordinates weapons deliveries to Ukraine.
• A potential second Trump term raises concerns about the security of assistance to Ukraine. 

NATO's secretary general has a plan to give the alliance control of the group supplying Ukraine with weapons — a job currently held by the US.

The move comes amid growing concerns that former President Donald Trumps's reelection could spell trouble for Ukraine's future fighting , as well as continued inaction in Congress thanks to a stark political divide on giving Ukraine more money.

NATO Secretary General Jens Stoltenberg raise the idea at a NATO meeting this week, suggesting that the alliance consider taking on leadership of the Ukraine Defense Contact Group, also called the Ramstein group, that organizes the delivery of weapons to Ukraine.

"We must ensure reliable and predictable security assistance to Ukraine for the long haul, so that we rely less on voluntary contributions and more on NATO commitments. Less on short-term offers and more on multi-year pledges," Stoltenberg said.

That move would shift control of the group away from the US, which created and has led it since Russia's full-scale invasion began in February 2022. The plan was pitched by Stoltenberg in order to "shield the mechanism" of getting Ukraine aid "against the winds of political change," officials told The Financial Times , an apparent reference to the deepening political divide in Washington, DC.

The plan also includes coordinating $100 billion from NATO allies over the next five years to ensure Ukraine gets the aid it needs to keep fighting. News of the proposal was first reported by POLITICO earlier this week.

At a press briefing on Wednesday, Stoltenberg refused to go into further details about how discussions on the proposal had gone but said NATO was "now in the process of developing a more robust and enduring, institutionalized framework for support to Ukraine." He added that Ukraine had been informed about this process.

It remains unclear right now whether this plan will ultimately gain traction, especially before the NATO summit in Washington this July, but the emergence of this plan seems to highlight growing concern about US leadership.

The Ukraine Defense Contract Group has been the critical element getting military aid to Ukraine. The once-a-month meeting of over 50 nations, including all NATO members, focuses specifically on the procurement of ammunition, weapons systems, and other technologies and gear for Ukraine.

It was started by Secretary of Defense Lloyd Austin in April 2022 and has since been helmed by US leadership.

The group's meetings have consisted of some of the most high-profile debates of the war, from whether Germany and the US would send main battle tanks to Ukraine to where NATO allies landed on providing fighter jets, like the F-16 .

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Recent sessions have seen little progress. The US, which has sent $44.2 billion in military aid since the full-scale invasion, has far-and-away been Ukraine's biggest individual supporter. But the tap's dried up in recent months, as political roadblocks in Congress have led to inaction on a supplemental funding bill including $60 billion for Ukraine.

That vital aid has been tied up since last October . While the Senate passed a foreign aid bill including that money as well as funds for Israel in February, House Speaker Mike Johnson hasn't put it up for a vote in the House yet; it remains unclear if the bill would have enough votes to pass, given staunch opposition from some Republican lawmakers.

With the US unable to get Ukraine more aid for the time being, European allies have stepped up to the plate, particularly Germany and France, as well as the Czech Republic.

Ahead of Wednesday's NATO meeting, Stoltenberg made clear that plans to tighten NATO control of support for Ukraine were inspired by what's happening in Congress, saying "the fact that there has been no agreement in the US Congress on a supplemental or continued this support has consequences."

"That's one of the reasons why the Ukrainian have to ration the number of artillery shells, why they have problems standing up against the Russian force with overwhelming military power because they're able to outgun them with more ammunition and more artillery," he said.

The potential shift in NATO politics and plans also comes on the cusp of a consequential US presidential election in November, when voters will likely decide between incumbent President Joe Biden and presumed Republican nominee former President Donald Trump.

The latter has not been shy about his distaste for NATO over the years, often spewing inflammatory rhetoric about the alliance taking advantage of US funding and some countries not "paying their fair share." During his first term, he even considered pulling the US out of the alliance.

He's also expressed an inclination to cease support for Ukraine and talked about negotiating a peace deal with Russia that would force Ukraine to cede much of the territory it's lost in the war. Ukrainian officials and leaders have rejected such a move, doubling-down on their goal of reclaiming all occupied land.

While campaigning this year, Trump's continued much of that same rhetoric. In February, the former president infuriated many NATO members when he told supporters he would let Russia "do whatever the hell they want" to NATO countries who aren't spending enough on the alliance's defenses.

And just last month, Hungarian Prime Minister Viktor Orbán, a long-time Trump ally and opponent of NATO aid to Ukraine, said that Trump wouldn't "give a penny in the Ukraine-Russia war. That is why the war will end." Orbán made this comment after visiting Trump at Mar-a-Lago for a social engagement.

Over the past few years, especially amid Russia's invasion, many NATO members have upped their contributions. Early projections show 18 nations spending the suggested 2% of their GDP on defense, seven more than in 2023. In 2014, only three NATO allies met this threshold.

If Trump is reelected, there are anxieties that the US could change position on supporting Ukraine, leaving the effort to European allies. Stoltenberg's proposal would ensure Ukraine has what it needs throughout a second Trump term and would protect funding and military aid from his administration.

But the move would dilute the US' leadership role in the alliance's support for Ukraine. It would also suggest a growing wariness of and distrust in America's shifting political stances.

On Wednesday, the White House pushed back on such a plan, reiterating the importance of the US leading the Ramstein Group. "It is bigger than NATO, it's 50 some-odd nations all around the world, including in the Indo-Pacific — and what brought them together was American leadership," Kirby told reporters.

He added that what is "keeping them together is American leadership."

But if the group is, as Kirby described it, "an example of how President Biden has really revitalized our leadership on the world stage to bring countries together to do this," then inaction in Congress shows the limits of that.

During a Hudston Institute event in Washington last week, Estonian Foreign Minister Margus Tsahkna said the US needed to step up its efforts to aid Ukraine . Many countries, Tsahkna said, including China, are watching the war, "so I think that [the] US must wake up as well, showing the leadership more because Europe is doing more right now."

Watch: Russian strike leaves 17 dead during Blinken's visit to Ukraine

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