On December 2, 2025, the ongoing diplomatic chess match over Ukraine’s future took a dramatic turn as two major developments unfolded on the international stage. In Brussels, European Commission President Ursula von der Leyen announced a bold new proposal to fund Ukraine’s battered economy using immobilised Russian assets, calling it a “reparations loan.” Meanwhile, in Moscow, Russian President Vladimir Putin sat down with top United States negotiators for five hours of talks aimed at hammering out a possible peace deal—only to emerge with no breakthrough, as deep divisions remained over Ukraine’s sovereignty and security.
At a media conference, von der Leyen unveiled the European Union’s plan to cover two-thirds of Ukraine’s financing needs for the next two years, a sum she valued at €90 billion (£79 billion). According to the BBC, she explained that the remainder would be covered by international partners. The funds, she said, would come from Russian assets frozen in the EU since the start of the war—assets that have become a geopolitical bargaining chip as the conflict drags on. “We have strong safeguards in place throughout to protect member states and reduce risks as much as possible,” von der Leyen assured reporters, clearly aware of the sensitivities surrounding the move.
Belgium, where the lion’s share of these Russian assets are held, voiced criticism of the proposal. Yet von der Leyen insisted that “almost all” of Belgium’s concerns had been addressed, emphasizing the need for unity and caution. The plan, which she described as a “reparations loan,” is designed to provide Ukraine with immediate financial support while sidestepping some of the legal and diplomatic hurdles that have dogged outright asset confiscation.
As the EU debated how best to support Kyiv, attention shifted east to Moscow, where the Kremlin hosted an American delegation led by Steve Witkoff—President Donald Trump’s special envoy—and Jared Kushner, Trump’s son-in-law. The high-stakes meeting capped a week of intensive diplomacy, as the Trump administration sought to push forward its own vision for ending the war. The talks were “very useful, constructive, and highly substantive,” said Russian foreign policy adviser Yuri Ushakov, according to CNN. But, he admitted, “a compromise option was not found.”
Ushakov elaborated that while some American proposals “look more or less acceptable, though they need to be discussed,” other points “do not suit us.” The two sides, he said, would continue working, but the sticking points were significant. Chief among them: the Kremlin’s insistence that Ukraine formally renounce its aspirations to join NATO and cede territory in the Donbas region—areas that Russia has annexed but not fully conquered. These demands, Ushakov made clear, remain Russia’s red lines.
The US side, for its part, had entered the talks with a sense of optimism. White House press secretary Karoline Leavitt told reporters before the meeting that the administration was “very optimistic” about reaching a deal to end what has now become a three-and-a-half-year war. Yet, as the hours ticked by in the Kremlin, it became apparent that optimism alone would not bridge the chasm between the parties.
Ukrainian President Volodymyr Zelensky, watching developments closely from Kyiv, said he was “waiting for signals” from the US delegation. “We will receive certain signals, and if the signals work out – if it is a fair game with our partners – then perhaps we will meet with the American delegation very soon,” he remarked, according to CNN. Zelensky indicated that a higher-level Ukrainian delegation would be dispatched if the Americans signaled an opportunity for “global but swift decisions.”
Putin, for his part, issued a stern warning just hours before the talks, declaring that while Russia was “not planning to go to war with Europe,” it was “ready” to respond if Europe were to initiate hostilities. He accused European leaders of trying to block the US-proposed peace deal by “putting forward demands that are absolutely unacceptable for Russia,” suggesting that Ukraine’s European allies were “on the side of the war.” “They themselves refused peace negotiations and are interfering with President Trump,” Putin asserted, as reported by CNN. While he did not elaborate, observers believe he was referencing changes made to Trump’s original 28-point peace plan, which had been rejected by both Ukraine and its European partners.
Earlier, a meeting in Geneva between Ukrainian and US delegations had resulted in tweaks to the US draft, making it more palatable to Kyiv. But on the eve of the Moscow summit, the Kremlin reiterated its position: any peace deal must address the “initial causes” of the invasion—shorthand for a halt to NATO expansion, recognition of Russia’s control over occupied Ukrainian territories, and, in effect, the end of Ukraine as a truly sovereign state.
“Some of the American proposals look more or less acceptable, though they need to be discussed,” Ushakov reiterated, but he was clear that “other points do not suit us.” The work, he said, would continue, but the path to peace looked as fraught as ever.
Meanwhile, a senior NATO official told CNN that there was “no indication that Moscow is willing to make meaningful concessions” to end the war. Instead, Russia appeared intent on weakening Ukraine’s military capabilities “as much as possible to pave the way for further aggression.” The official’s assessment cast further doubt on the prospects for a negotiated settlement in the near term.
Behind the scenes, the diplomatic maneuvering continued. On December 1, 2025, US officials and a Ukrainian delegation had met in Miami for what Secretary of State Marco Rubio described as “very productive” talks, though he cautioned that more work remained. Witkoff and Kushner, who has re-emerged as a key figure in US diplomatic efforts despite holding no official government role, were seen strolling through Moscow’s Red Square with Kremlin representative Kirill Dmitriev before the Kremlin meeting. Earlier, the pair had lunched with Dmitriev at a Michelin-starred Moscow restaurant, feasting on caviar, quail, venison, and crab—an oddly opulent prelude to the weighty discussions that followed.
As the world watches, Ukraine’s fate hangs in the balance. The EU’s financial gambit, using frozen Russian assets as a lifeline for Kyiv, faces legal and political hurdles but signals Europe’s resolve. Meanwhile, the US and Russia remain locked in a diplomatic tug-of-war, with Ukraine’s sovereignty and security at stake. The marathon talks in Moscow may not have yielded a breakthrough, but they underscored just how high the stakes are—and how far the parties still have to go before peace is within reach.