Australia has signed a five-year agreement with Nauru to provide AUD $100 million in budget support, including AUD $40 million for policing and security enhancements.
In return, Nauru pledged to prevent any third party, such as China, from using its critical infrastructure for security purposes.
The deal also grants Canberra the right to veto third-country involvement in key sectors, including telecommunications and cybersecurity. The agreement aims to bolster Australia’s influence in the Pacific amid growing competition with China, which recently restored diplomatic relations with Nauru after the island nation cut ties with Taiwan earlier this year.
The deal mirrors a similar arrangement Australia struck with Tuvalu last year.