Ukraine has signalled a major shift in its war aims, with President Volodymyr Zelenskiy offering to abandon Kyiv’s long-held ambition of joining NATO as peace talks with U.S. envoys showed signs of progress in Berlin.
Zelenskiy held more than five hours of discussions on Sunday with U.S. representatives, including Trump envoy Steve Witkoff and Jared Kushner, as part of an intensified push to end the war with Russia. Talks are set to resume on Monday morning, with draft documents under consideration.
Witkoff said “a lot of progress was made” during discussions covering a proposed 20-point peace framework as well as economic and security issues, though few details were disclosed publicly. Zelenskiy is expected to comment once negotiations conclude.
Ahead of the talks, the Ukrainian leader said Kyiv could drop its NATO membership goal in exchange for firm Western security guarantees against future Russian attacks — a significant concession given NATO membership is written into Ukraine’s constitution. While the move aligns with one of Moscow’s core demands, Ukraine has continued to resist territorial concessions.
The talks were hosted by German Chancellor Friedrich Merz, with other European leaders expected in Germany on Monday. However, Germany’s defence minister cautioned that any security guarantees would need to be credible and enforceable to deter renewed Russian aggression.
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Signs of progress in peace talks may support European risk sentiment and cap geopolitical risk premia, though uncertainty around security guarantees and territorial issues remains high. I'd emphasise that uncertainty does indeed remain high. This development is positive at the margin, but given Putin's recalcitrance, it's a minor impact only.
