Europe divided as Ukraine peace talks stall and funding dispute deepens

Monday 15 - 17:50

By: Dakir Madiha

Europe divided as Ukraine peace talks stall and funding dispute deepens

The second round of peace negotiations in Berlin between Ukrainian President Volodymyr Zelensky, U.S. envoys, and European leaders made little progress after Russia dismissed the latest proposals. The discussions, aimed at finding a pathway to end the war, revealed entrenched positions on both sides and growing fatigue among Western allies who face rising political and economic pressure to sustain support for Kyiv.

Kremlin rejects compromise plans

Kremlin adviser Yuri Ushakov publicly reaffirmed Russia’s stance before the Berlin sessions, condemning any European or Ukrainian amendments to the draft agreement as “non‑constructive.” Moscow maintains strict opposition to revisiting territorial questions, particularly the creation of a demilitarized buffer area in Donbas. Ushakov reiterated that President Vladimir Putin demands a total Ukrainian withdrawal from the entire Donetsk region, warning that Russian forces would take the area by force if Kyiv resists.

On the other side, Zelensky has advanced a “stand‑fast” formula proposing a ceasefire along current frontlines while diplomatic talks continue. His position underscores a willingness to freeze the conflict without ceding land, but the Kremlin rejects any arrangement that fails to legitimize its territorial claims.

Ukraine signals shift on NATO ambitions

In an apparent softening of previous demands, Zelensky indicated Ukraine would suspend its pursuit of NATO membership to secure formal defense guarantees from the United States and key European allies. These guarantees, he stressed, must hold the same weight as NATO’s Article 5, which commits members to mutual defense. Ukrainian negotiators also submitted a revised 20‑point peace framework that counters earlier drafts criticized for favoring Russian conditions.

Zelensky rejected an American suggestion that Ukraine withdraw partially from Donetsk to establish a “free economic zone,” calling instead for balanced, reciprocal troop withdrawals supervised by international observers.

European Union faces internal funding rift

As peace talks stumbled, divisions widened in Brussels over how to finance Ukraine’s reconstruction and defense. EU foreign policy chief Kaja Kallas acknowledged that plans to redirect frozen Russian assets were at a “difficult stage.” The bloc is still debating a €90 billion support package backed by approximately €210 billion in Russian central bank funds held mainly in Belgium.

Belgium, Italy, Bulgaria, Malta, and the Czech Republic have opposed this mechanism, warning of significant legal and fiscal risks. European Council President António Costa pledged that leaders meeting on December 18 in Brussels would find a solution, insisting no member state could block vital assistance for Ukraine.

With Ukraine entering a fourth winter of conflict, European officials fear that international hesitation could embolden Russia. Intelligence estimates suggest that if Ukraine loses ground, further escalation on the continent could occur within a few years.