The draft proposal incorporates Ukraine’s preferences by integrating political and commercial interests to safeguard security and boost economic growth.
The United States and Ukraine have reached consensus on several key issues aimed at ending the nearly four-year-long war, but major differences remain over territorial control in eastern Ukraine and the future management of the Zaporizhzhia nuclear power plant, Ukrainian President Volodymyr Zelenskyy said.
Mr. Zelenskyy spoke as Washington shared a 20-point peace plan—finalized after marathon talks in Florida in recent days—with Russian negotiators. He said a response from Russia was expected on Wednesday (December 24, 2025). The Ukrainian president briefed journalists on the proposal on Tuesday, with his remarks under embargo until Wednesday morning.
The draft proposal, which reflects Ukraine’s priorities, weaves together political and commercial interests aimed at safeguarding security while enhancing economic potential.
At the core of the negotiations is the sensitive territorial dispute over the Donetsk and Luhansk regions, collectively known as the Donbas. Describing this as “the most difficult point,” Mr. Zelenskyy said the issue would ultimately need to be addressed at the leaders’ level.
Russia, he said, continues to press maximalist demands, insisting that Ukraine surrender the remaining parts of Donbas that are still under Kyiv’s control—an ultimatum Ukraine has firmly rejected. Moscow currently controls most of Luhansk and about 70% of Donetsk.
In an effort to find common ground, the United States has proposed turning the disputed regions into free economic zones. Ukraine, however, has maintained that any such arrangement must be subject to a referendum, allowing Ukrainians to decide their future. Kyiv is also seeking the demilitarisation of the area and the deployment of an international force to ensure stability.
The future of the Zaporizhzhia nuclear power plant—Europe’s largest, currently under Russian occupation—remains another major sticking point. The U.S. has proposed a tripartite consortium involving Ukraine and Russia, with equal stakes for each party.
Mr. Zelenskyy said Ukraine instead favoured a joint venture between the United States and Ukraine, under which Washington could determine how its share would be allocated, presumably to Russia.
“We did not reach a consensus with the American side on the territory of the Donetsk region and on the ZNPP,” Mr. Zelenskyy said, referring to the nuclear plant. “But we have significantly narrowed differences on most other positions. In principle, agreement has been reached on all remaining points.”
U.S. proposes free economic zones as a compromise on disputed territories
Points 14 and 12 of the proposed agreement are expected to be major sticking points in the negotiations. While Point 14 addresses territories straddling the eastern front line, Point 12 focuses on the management of the Zaporizhzhia nuclear power plant.
Ukrainian President Volodymyr Zelenskyy said the talks reflect sharply differing positions.
“We are in a situation where the Russians want us to leave the Donetsk region, while the Americans are trying to find a solution that does not amount to our withdrawal—because we are opposed to leaving,” Mr. Zelenskyy said. “They are looking at options such as a demilitarised zone or a free economic zone, in other words, a framework that could accommodate the views of both sides.”
According to the draft, the current contact line—cutting across five Ukrainian regions—would be frozen once the agreement is signed.
Mr. Zelenskyy said Ukraine’s position is that any move to establish a free economic zone must be approved through a referendum, reaffirming that the final decision rests with the Ukrainian people. He added that the referendum process would take around 60 days, during which hostilities would need to cease to allow the process to take place.
More complex negotiations will focus on how far troops would need to pull back under Ukraine’s proposal and where international forces would be deployed. President Volodymyr Zelenskyy said Ukrainians must ultimately decide whether the outcome is acceptable.
“People can choose whether this ending suits us or not,” he said.
The draft plan also calls for Russian forces to withdraw from the Dnipropetrovsk, Mykolaiv, Sumy, and Kharkiv regions. It proposes the deployment of international forces along the contact line to monitor compliance with the agreement.
Mr. Zelenskyy said the lack of trust in Russia, citing repeated violations of past commitments, meant that the existing contact line was effectively becoming a de facto free economic zone. International forces, he added, would be needed to ensure that no one entered the area under false pretenses.
“There is no faith in the Russians—they have broken their promises many times. That is why today’s contact line is turning into a de facto free economic zone, and international forces must be there to guarantee that no one crosses it under any guise—neither ‘little green men’ nor Russian soldiers disguised as civilians,” he said.
Managing the Zaporizhzhia nuclear power plant emerges as key hurdle in talks
Ukraine has also proposed that the occupied city of Enerhodar, which is linked to the Zaporizhzhia nuclear power plant, be designated a demilitarised free economic zone, Ukrainian President Volodymyr Zelenskyy said. He added that this issue alone required nearly 15 hours of discussions with the United States.
At present, Washington has proposed that the power plant be jointly operated by Ukraine, the U.S. and Russia, with each party holding an equal stake and receiving dividends from the venture.
“The U.S. is offering 33 per cent, 33 per cent and 33 per cent, with the Americans acting as the main manager of this joint enterprise,” Mr. Zelenskyy said. “For Ukraine, this sounds highly unfavourable and not entirely realistic. How can there be joint commercial activity with the Russians after everything that has happened?”
Ukraine has countered with an alternative proposal under which the plant would be run as a joint venture between Ukraine and the United States, allowing Washington to independently decide how to distribute its 50 per cent share—presumably to Russia.
Mr. Zelenskyy said restarting operations at the plant would require billions of dollars in investment, including the restoration of the adjacent dam. “There were about 15 hours of conversations just on the plant,” he said. “These are extremely complex issues.”
