Ukraine Pitches US Free-Trade Deal for Post-War Recovery

Ukrainian President Volodymyr Zelenskiy announced Friday that he is in discussions with the United States about a potential free-trade agreement, a cornerstone of a wider prosperity package designed to fuel the nation's recovery after the war.

In a phone interview with Bloomberg, Zelenskiy explained the deal would establish zero tariffs on trade with the U.S. and would apply to certain industrialized regions of Ukraine. He argued this would provide the country with "very serious cards" against neighboring states, potentially attracting significant investment and new businesses.

The Ukrainian leader emphasized that he needs to discuss the proposal's details directly with President Donald Trump. He also framed the agreement as an additional guarantee for Ukraine's economic security.

Navigating Diplomacy Through US Envoys

Zelenskiy's comments followed a report from his top negotiator, Rustem Umerov, who held a call with Trump's special envoys, Steve Witkoff and Jared Kushner. According to Zelenskiy, the U.S. representatives have recently been in contact with Russia in "some kind of format," though he did not know if they planned to travel to Russia for in-person meetings.

The diplomatic process involves Ukraine submitting feedback on territorial proposals to the U.S. team. These proposals are then relayed to Russian officials for their input before a response is delivered back to Kyiv.

Zelenskiy expressed hope of receiving Russia’s response to a 20-point framework by the end of this month. This timeline would coincide with his efforts to finalize a recovery plan and security guarantees with Trump. He expects to meet Trump either in the U.S. or at the World Economic Forum in Davos, Switzerland.

Demand for Concrete Security Guarantees

A key focus for Zelenskiy is securing specific U.S. commitments in the event of renewed Russian aggression.

"I don't want everything to end up in them merely promising to react," Zelenskiy said. "I really want something more concrete."

While talks on security guarantees with allies have progressed, territorial disputes remain the primary obstacle in negotiations to end the invasion. Earlier this year, Trump stated he was "not thrilled" with Russian President Vladimir Putin but has not yet publicly committed to new measures to support Ukraine.

Two Proposals for De-escalation on the Battlefield

To address the military stalemate, Ukraine is considering two distinct plans, including one proposed by the United States to create a special economic zone.

1. The Free Economic Zone

This proposal, separate from the broader free-trade deal, is a localized plan for the battlefield area. If a truce is reached, a buffer area would be established as troops pull back. This zone would allow businesses to operate and people to live under a special legal and tax regime.

"The format is difficult but fair," Zelenskiy noted. He added that the plan would require Russia to "mirror" Ukraine's actions and would need domestic discussion. The zone could be created in parts of the Donbas region, serving as a compromise that requires both sides to withdraw their forces.

2. Freezing the Contact Line

A second option involves halting the fighting while leaving forces in their current positions, with unresolved issues addressed through diplomacy.

"It's about freezing the contact line, not the conflict," Zelenskiy clarified, adding that this arrangement would be easier for Ukraine's foreign allies to implement and monitor.

Ukraine's Unwavering Stance and Military Needs

Zelenskiy reiterated that Russia’s actions indicate it is not prepared for genuine diplomacy. He affirmed that Ukraine will never recognize its occupied territories as Russian, though it expects to restore full sovereignty in the future.

In this context, he urged the U.S. to provide a more systematic response to Russian aggression, noting that Ukraine has still not received all pledged Patriot air-defense systems and ammunition. His call came as Russia launched a major air attack on Kyiv early Friday, leaving large parts of the capital without power, heat, and water.

While Kyiv's mayor urged residents to leave the city to avoid freezing, Zelenskiy criticized the call as alarmist, stating that efforts should focus on restoring normal operations.

Regarding recent calls from European leaders for renewed dialogue with Moscow, Zelenskiy said he was not opposed, as long as Putin understands the discussions are serious. "We are moving toward the final stage, even if we don't yet know what it will look like," he concluded.