US and Ukraine reach consensus on key issues aimed at ending the war but territorial disputes remain

KYIV, Ukraine — The United States and Ukraine have reached a consensus on several critical issues aimed at bringing an end to the nearly four-year conflict, but sensitive issues around territorial control in Ukraine's eastern industrial heartland, along with the management of the Zaporizhzhia nuclear power plant, remain unresolved, Ukraine's president said.

Volodymyr Zelenskyy briefed journalists on each point of the plan on Tuesday. His comments were embargoed until Wednesday morning. The draft proposal, which reflects Ukraine's wishes, intertwines political and commercial interests to safeguard security while boosting economic potential.

Asked about the plan, Kremlin spokesperson Dmitry Peskov said that Moscow would set out its position based on information received by Russian presidential envoy Kirill Dmitriev, who met with U.S. envoys in Florida over the weekend.

Peskov declined to share further details, saying that Moscow believed it was ''highly inappropriate to conduct any kind of communication via the media.''

At the heart of the negotiations lies the contentious territorial dispute concerning the Donetsk and Luhansk regions, known as the Donbas. This is ''the most difficult point,'' Zelenskyy said. He said these matters will be discussed at the leaders level.

Russia continues to assert maximalist demands, insisting that Ukraine relinquish the remaining territory in Donbas that it has not captured — an ultimatum that Ukraine has rejected. Russia has captured most of Luhansk and about 70% of Donetsk.

In a bid to facilitate compromise, the United States has proposed transforming these areas into free economic zones. Ukraine insists that any arrangement must be contingent upon a referendum, allowing the Ukrainian people to determine their own fate. Ukraine is demanding the demilitarization of the area and the presence of an international force to ensure stability, Zelenskyy said.

But Zelenskyy countered with a joint venture proposal between the U.S. and Ukraine, in which the Americans are able to decide how to distribute their share, presuming it would go to Russia.

''We did not reach a consensus with the American side on the territory of the Donetsk region and on the ZNPP,'' Zelenskyy said, referring to the power plant in Zaporizhzhia. ''But we have significantly brought most of the positions closer together. In principle, all other consensus in this agreement has been found between us and them.''

A free economic zone compromise

Point 14, which covers territories that cut across the eastern front line, and Point 12, which discusses management of the Zaporizhzhia plant, will likely be major sticking points in the talks.

Zelenskyy said: ''We are in a situation where the Russians want us to leave the Donetsk region, and the Americans are trying to find a way so that it is ‘not a way out' — because we are against leaving — they want to find a demilitarized zone or a free economic zone in this, that is, a format that can provide for the views of both sides.''

Ukraine's stance is that any attempt to create a free economic zone must be ratified by a referendum, affirming that the Ukrainian people ultimately hold the decision-making power, Zelenskyy said. This process will require 60 days, he added, during which time hostilities should stop to allow the process to happen.

More difficult discussions would require hammering out how far troops would be required to move back, per Ukraine's proposal, and where international forces would be stationed. Zelenskyy said ultimately ''people can choose: this ending suits us or not,'' he said.

The draft also proposes that Russian forces withdraw from Dnipropetrovsk, Mykolaiv, Sumy, Kharkiv regions, and that international forces be located along the contact line to monitor the implementation of the agreement.

''Since there is no faith in the Russians, and they have repeatedly broken their promises, today's contact line is turning into a line of a de facto free economic zone, and international forces should be there to guarantee that no one will enter there under any guise — neither ‘little green men' nor Russian military disguised as civilians,'' Zelenskyy said.

Managing Zaporizhzhia power plant

For now, the U.S. proposes that the plant be jointly operated by Ukraine, the U.S. and Russia, with each side receiving dividends from the enterprise.

''The USA is offering 33% for 33%f or 33%, and the Americans are the main manager of this joint venture,'' he said. ''It is clear that for Ukraine this sounds very unsuccessful and not entirely realistic. How can you have joint commerce with the Russians after everything?''

Ukraine offered an alternative proposal, that the plant be operated by a joint venture with the U.S. in which the Americans can determine independently how to distribute their 50% share.

Zelenskyy said billions in investments are needed to make the plant run again, including restoring the adjacent dam.

''There were about 15 hours of conversations about the plant. These are all very complex things.''

The document ensures that Ukraine will be provided with ''strong'' security guarantees that mirror NATO's Article 5, which would obligate Ukraine's partners to act in the event of renewed Russian aggression.

Zelenskyy said that a separate bilateral document with the U.S. will outline these guarantees. This agreement will detail the conditions under which security will be provided, particularly in the event of a renewed Russian assault, and will establish a mechanism to monitor the ceasefire.

This mechanism will utilize satellite technology and early warning systems to ensure effective oversight and rapid response capabilities.

''The mood of the United States of America is that this is an unprecedented step towards Ukraine on their part. They believe that they are giving strong security guarantees,'' he said.

The draft contains other elements including keeping Ukraine's army at 800,000 during peace time, and by nailing down a specific date for ascension to the European Union.

The document proposes accelerating a free trade agreement between Ukraine and the U.S. once the agreement is signed. The U.S. wants the same deal with Russia, said Zelenskyy.

Ukraine would like to receive short-term privileged access to the European market and a robust global development package, that will cover a wide-range of economic interests, including a development fund to invest in industries including technology, data centers and artificial intelligence, as well as gas.

Also included are funds for the reconstruction of territories destroyed in the war.

''Ukraine will have the opportunity to determine the priorities for distributing its share of funds in the territories under the control of Ukraine. And this is a very important point, on which we spent a lot of time,'' Zelenskyy said.

The goal will be to attract $800 billion through equity, grants, loans and private sector contributions.