Kyiv is navigating intense diplomatic pressure as President Volodymyr Zelenskyy reveals the United States is seeking a “free economic zone” in parts of Donetsk currently controlled by Ukraine.

Zelenskyy emphasized that any territorial or governance decisions would require approval by the Ukrainian people.

Zelenskyy confirmed on Thursday that Ukraine presented the US with a 20-point counter-proposal in ongoing peace discussions. The proposals focus on security guarantees and ensure that any territorial concessions would be decided through a referendum or elections.

“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 … region,” Zelenskyy explained. “They do not know who will govern this territory.”

The Ukrainian president clarified that while the US frames the area as an “economic free zone,” Russia refers to it as a “demilitarised zone.” Zelenskyy insisted that the Ukrainian people must have the final say.

Key issues in peace talks

The discussions center on the control of the Donetsk region in the Donbas and the future governance of the Zaporizhzhia nuclear power plant, which is under Russian control. Zelenskyy pushed back against unilateral troop withdrawals, questioning why Russian forces would not also pull back proportionally.

Security guarantees were highlighted as a critical component for all subsequent steps. Talks on Thursday included top US officials, such as Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and special envoy Steve Witkoff.

International reactions and support

NATO Secretary General Mark Rutte warned that Russia could target the alliance with military action within five years, urging rapid increases in defense spending and production. “Conflict is at our door,” he said in Berlin, stressing urgency for preparedness.

Meanwhile, Ukraine’s allies discussed mobilizing frozen Russian assets, potentially totaling €200 billion ($232bn), to support Kyiv. The European Commission aims to keep these funds immobilized without the six-month renewal requirement, though final approval by EU finance ministers is pending.

German Chancellor Friedrich Merz and Rutte indicated further talks with the US are scheduled, with an international Ukraine meeting possible next week. Al Jazeera reporting suggested European leaders believe Ukraine is closer to a ceasefire than ever, with any territorial concessions requiring Kyiv’s approval.