Ukraine and U.S. Near Completion of Peace Proposals Amid Territorial Disputes

Ukrainian President Volodymyr Zelenskyy announced that peace proposals aimed at ending the conflict with Russia could be finalized within days. These proposals, developed in coordination with U.S. and European officials during talks in Berlin, are expected to be presented to the Kremlin soon. While the draft peace plan is considered "very workable," unresolved issues remain, particularly concerning Russian-occupied Ukrainian territories. The U.S.-led peace efforts have gained momentum, with roughly 90% consensus reported among Ukraine, the U.S., and European partners. However, major challenges persist due to Russian demands, including recognition of annexed territories like Crimea and areas in Donbas, which Ukraine firmly rejects.

Kremlin spokesman Dmitry Peskov clarified that Russia seeks a comprehensive peace, not a temporary truce, signaling resistance to partial agreements. Zelenskyy emphasized that compromises like a "free economic zone" in Donbas would not imply Russian control. If diplomacy fails, Ukraine expects increased Western sanctions on Russia and further military support. Up to five documents, many focusing on security guarantees, are being prepared as part of the peace framework. Zelenskyy expressed optimism about the unity displayed during the Berlin discussions between the U.S., Europe, and Ukraine.

European leaders, including German Chancellor Friedrich Merz, have expressed support for security guarantees for Ukraine as a precursor to any territorial decisions involving Russia. A joint statement from ten European leaders and EU Commission President Ursula von der Leyen proposed maintaining Ukraine’s military strength and creating a European-led multinational force to assist in rebuilding Ukrainian forces, securing airspace, and ensuring maritime safety. Additionally, a U.S.-led mechanism for monitoring a ceasefire would be established to detect and respond to future threats.

Germany has unveiled a 10-point plan to enhance its commitment to Ukraine’s defense amid the ongoing conflict. The plan emphasizes deepening defense cooperation through joint ventures, research partnerships, and procurement initiatives. Germany aims to support Ukraine's defense industry as part of broader security guarantees, including federal investment guarantees. The two countries will examine joint acquisition of Ukrainian-made defense systems, such as interceptor drones, to support NATO airspace protection under the European Sky Shield Initiative.

On December 16, 2025, Ukrainian President Volodymyr Zelenskyy and representatives from over 30 countries are set to formally approve the establishment of a compensation mechanism to address damages caused by Russia’s invasion of Ukraine. This initiative, to be finalized in The Hague, is backed by the Council of Europe and aims to provide restitution for "damage, loss or injury" linked to the conflict that began in February 2022. The compensation body will operate through the International Claims Commission, which supplements the existing damage register set up at a 2023 Council of Europe summit in Iceland. So far, around 80,000 claims have been filed.

Despite these developments, significant disagreements remain regarding territorial issues. The U.S. wants a framework it can present to Russia, proposing Ukraine withdraw from around 14% of the Donbas region—territory claimed by Russia—to establish a demilitarized "free economic zone." While 90% of the issues between the U.S. and Ukraine are reportedly resolved, some technical details are still pending.

Ukrainian President Volodymyr Zelenskyy disclosed that Ukraine has submitted a revised 20-point peace framework to the U.S. to help end its war with Russia. A key U.S. proposal includes the creation of a "free economic zone" in Ukraine-controlled eastern Donbas areas, which Russia wants Ukraine to cede. Under this plan, Ukrainian forces would withdraw, and the area would become a demilitarized zone without Russian military presence or a clear governance plan. Zelenskyy emphasized the need for a public referendum on any territorial concessions.

The U.S. is pressuring Ukraine for a swift agreement amid intensified Russian offensives and infrastructure attacks. While no formal deadline was set, Zelenskyy indicated Washington seeks clarity by Christmas. The broader peace package includes security guarantees and rebuilding plans. Ukraine demands fully ratified security commitments and aims to maintain an 800,000-strong military in the post-war period.