Zelenskyy Proposes Free Economic Zone in Eastern Ukraine Amid Peace Talks

Ukrainian President Volodymyr Zelenskyy has signaled a major shift in peace negotiations, proposing that parts of Ukraine’s eastern Donbas region could become a demilitarized free economic zone. The offer comes with a key condition: Russian troops must also withdraw, and the arrangement would be monitored by international forces. Zelenskyy emphasized that the plan must go to a referendum, allowing citizens to decide whether the agreement suits them.

Zaporizhzhia Nuclear Plant Talks

The Zaporizhzhia power plant agreements might be modeled after similar types of agreements between the United States and Zaporizhzhia’s power plant owners (Russia). President Zelenskyy mentioned the option for the United States to create an agreement with Zaporizhzhia, then, give flexibility in how to distribute U.S. energy resources to Ukraine as the U.S. owner, rather than have the arrangement set-up to be a division three equal ways among the U.S., Ukraine and Russia; which President Zelenskyy called an “unrealistic” type of arrangement. He also emphasized that hundreds of millions of dollars will need to be invested to repair and expand work towards modernizing the Zaporizhzhia energy grid and existing infrastructure.

Security Guarantees and Military Limits

The draft agreement will provide assurances that if Russia were to escalate its military aggression against Ukraine, Ukraine would receive security assistance from the U.S. just like NATO’s Article 5 assurance. In addition to the security guarantees, the draft agreement includes the minimum capability of a standing army of 800,000 active military personnel to meet Russia’s military requirement, but provides Ukraine with some level of governance and oversight in the areas of monetary funding for the reconstruction of Ukraine as well as developing Ukraine’s economy.

Boosting Economy and Elections

This proposal also aims to encourage and expedite development inside of Ukraine by establishing trade agreements between the U.S. and Ukraine and to attract and secure $800 billion in foreign investment, and to provide Ukrainian-based industry development (technology-based industries, artificial intelligence, gas drilling, etc.). The proposal also specifies that elections should be held as soon as the final draft agreement has been signed, and Ukraine has been asking for the immediate release of all individuals being held as a result of the conflict since March of this year including all civilian and child detainees.

Next Steps


While Zelenskyy has aligned closely with U.S. negotiators, Moscow has yet to indicate any willingness to pull back. With international monitoring and public referendums on the table, the proposal could reshape the conflict—but only if Russia agrees.

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