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US proposes ‘Free Economic Zone’ in territory of Ukraine if it pulls back forces to appease Russia in peace deal

 

 

 

Ukrainian President, Volodymyr Zelensky revealed on Thursday, December 11, that the United States has put forward a proposal to create a “free economic zone” in portions of the eastern Donbas region, contingent upon a negotiated peace with Russia that involves a Ukrainian troop withdrawal.

 

Speaking to reporters, Zelensky confirmed that Kyiv has presented the US with an updated, complex peace plan—described as “a set of documents”—with the Trump administration reportedly seeking a “full understanding” of the plan’s status by Christmas.

 

The core challenge remains the question of territory. Zelensky noted that Russia continues to demand the entirety of the Donbas, a claim Ukraine refuses to accept. Ukraine’s position is to maintain control up to the current contact line, leading to a diplomatic standoff.

 

The US proposal for a “free economic zone” in the areas from which Ukrainian troops would pull back is intended as a compromise. Russia refers to this territory as a “demilitarized” zone.

 

However, Zelensky stressed that accepting this idea is “not a fact,” as it raises “serious” questions about fairness, reciprocity, and management. He questioned the logic of a unilateral Ukrainian withdrawal, arguing that Russia should be required to withdraw an equal distance from the land it currently occupies.

 

Furthermore, he asked who would be responsible for policing the proposed “free economic zone” and what safeguards would prevent Russian forces from infiltrating it under the guise of civilians.

Zelensky insisted that any compromise must be fair, and the ultimate decision on territory would be made by “the people of Ukraine,” possibly through elections or a referendum.

 

The push for peace continues, with Zelensky calling his talks with the US negotiating team which included Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, special presidential envoy Steve Witkoff, and Jared Kushner—”constructive.”

NATO chief Mark Rutte also participated in the discussions. Further talks involving US, European, and Ukrainian officials are scheduled to convene this weekend in Paris.

 

Despite the diplomatic activity, White House press secretary Karoline Leavitt expressed the President’s frustration with both sides and noted it is “up in the air” whether a US representative will attend the Paris meetings.

 

Zelensky emphasized that security guarantees remain crucial for Ukraine moving forward, recalling the “negative experience” of the 1994 Budapest Memorandum. Under that agreement, Ukraine surrendered its nuclear arsenal in exchange for a pledge from Russia to respect its sovereignty—a pledge Russia has since repeatedly violated.

 

Zelensky stressed the importance of a new security document that provides “specific answers to what concerns Ukrainians most: What actions will our partners take if Russia decides to renew its aggression.”

 

A ceasefire, he conceded, would likely only be implemented after a framework agreement is signed, as Russia is unwilling to agree to one beforehand
 

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