US proposes ‘free economic zone’ in parts of Donbas after Ukrainian pullback, Zelensky says

By Christian Edwards, Kosta Gak, CNN

(CNN) — The United States has suggested creating a “free economic zone” in parts of the eastern Donbas region from which Ukraine would withdraw under a negotiated peace with Russia, Ukrainian President Volodymyr Zelensky said Thursday.

In wide-ranging comments to reporters, Zelensky said that Kyiv has presented the US with an updated version of a peace plan — “not a single document, but a set of documents,” many of which need to be finalized. He said the Trump administration wants a “full understanding” of the status of the plan by Christmas.

Questions of territory remain unresolved, the Ukrainian leader said. “The Russians want the whole of the Donbas — but we, of course, do not accept this,” he explained. Russia has been fighting in the Donbas region, which spans the Donetsk and Luhansk regions, since 2014. Moscow is now trying to secure through US-mediated peace negotiations what it has been unable to win through force of arms.

“Our position is that it is fair to stand where we stand — that is, on the contact line,” Zelensky said. “Therefore, there is a discussion between these different positions, and it has not yet been decided.”

As a compromise, Zelensky said the US has discussed creating a “free economic zone” in the parts of the Donbas from which Ukrainian troops would withdraw. The Russians refer to the territory under discussion as a “demilitarized” zone, he added.

While this might break the diplomatic impasse, Zelensky said, “serious” questions remain about who would manage the territory, and how to ensure that troop withdrawals were fair and reciprocal.

“If someone withdraws from one side — as they want Ukrainians to do — why doesn’t the other side of the war withdraw the same distance in the other direction?” he asked. Russia should also have to withdraw from land that it currently holds, not just Ukraine, he suggested.

Zelensky also questioned who would police the “free economic zone.”

“If some troops have to leave and other troops remain where they are, what exactly will prevent these other troops — i.e. Russian troops — from going further? Or from infiltrating the ‘free economic zone’ under the guise of ‘civilians’ and taking control of it? This is all very serious,” he said.

The Ukrainian leader cautioned that “it is not a fact that we, as Ukraine, will accept this — but when you talk to us about compromise, you have to offer a fair compromise.” He said the question of territory would ultimately be for “the people of Ukraine” to answer, either through elections or a referendum.

Push for peace

In separate comments, Zelensky said his delegates held “constructive” 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, the president’s son-in-law. NATO chief Mark Rutte also joined the talks, Zelensky said.

A European official told CNN that US, European and Ukrainian officials will convene this weekend in Paris for further talks on the peace plan that Trump hopes can bring Russia’s nearly four-year-old war to an end.

Zelensky told reporters that the US wants the process to finish as soon as possible. “I think they really wanted, and maybe still want, to have a full understanding of where we stand with this agreement by Christmas,” he said.

Asked when a ceasefire might begin, Zelensky said this will likely only happen after the warring sides sign a framework agreement. While Ukraine has long called for an immediate ceasefire as a test of Russia’s seriousness about peace, Zelensky conceded that “it is no secret that the Russians will not agree to a ceasefire if there is no agreement.”

After his conversations with the US delegates, Zelensky said security guarantees remain critical for the next stages of the peace process.

“We already had a negative experience with the Budapest Memorandum,” he said. He referred to a 1994 agreement under which newly independent Ukraine gave up the nuclear weapons parked on its territory after the collapse of the Soviet Union in exchange for Russia’s pledge to respect Ukraine’s sovereignty and territorial integrity.

“Everyone remembers this, as well as the fact that Russia has repeatedly violated all its other commitments,” Zelensky said. “Therefore, it is now important that this document on security guarantees provides specific answers to what concerns Ukrainians most: What actions will our partners take if Russia decides to renew its aggression.”

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CNN’s Kevin Liptak contributed to this report.