Zelenskyy: U.S. proposes 'free economic zone' in east if Ukraine cedes Donbas

Ukraine has presented the U.S. with a revised 20-point framework to end the war with Russia, President Volodymyr Zelenskyy said on Thursday, adding that the issue of ceding territory remains a major sticking point in negotiations.

Speaking to reporters in Kyiv, Zelenskyy said Washington was proposing, as a compromise, the creation of a ‘free economic zone’ in the Ukraine-controlled parts of eastern Donbas, which Russia has demanded Ukraine hand over.

"They see it as Ukrainian troops withdrawing from the Donetsk region, and the compromise is supposedly that Russian troops will not enter this part of Donetsk region. They do not know who will govern this territory," he said, adding that Russia is referring to it as a "demilitarised zone".

However, Zelenskyy said there was still no common understanding on the land issue and that Ukrainians should vote on any territorial concessions in a referendum.

Kyiv, in the latest round of frantic shuttle diplomacy, is seeking to balance out a U.S.-backed plan whose original version was seen as too favourable to Moscow.

Zelenskyy added that Russia’s withdrawal from small areas in the northeastern Kharkiv and Sumy regions, as well as the southeastern Dnipropetrovsk region, was under discussion.

He said the contact lines in the partially occupied southern regions of Zaporizhzhia and Kherson would be frozen where they currently stand.

The U.S. has also proposed potential joint governance of the Zaporizhzhia Nuclear Power Plant, the largest in Europe, which is currently held by Russia and which Moscow wants to retain under its control.

Meanwhile, U.S. President Donald Trump said on Thursday he will send a representative to participate in talks in Europe on Ukraine this weekend if there's a good chance of making progress on a ceasefire deal.

"We'll see whether or not we attend the meeting," Trump told reporters in the Oval Office.

"We'll be attending the meeting on Saturday in Europe if we think there's a good chance. And we don't want to waste a lot of time if we think it's negative," Trump added.

Pressure to secure peace

Ukraine is under mounting U.S. pressure to secure a deal with Russia, which has stepped up advances along the frontline in recent months and renewed large-scale attacks on Ukrainian energy infrastructure.

Following reports that President Trump had set a Christmas deadline for Ukraine to accept the proposal, Zelenskyy said Washington had not given Kyiv a strict timeline.

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"I think they really wanted, or perhaps still want, to have a complete understanding of where we stand with this agreement by Christmas," he said.

Alongside the 20-point framework, the wider peace plan will include separate documents on security guarantees, intended to prevent a future Russian offensive, and on rebuilding Ukraine’s war-damaged cities.

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Ukraine Russia Volodymyr Zelenskyy Vladimir Putin Donald Trump