The administration of US President Donald Trump has expressed its readiness to recognize the Russian Federation’s control over Crimea and other temporarily occupied Ukrainian territories in order to reach an agreement to end the war. According to journalists, Trump sent special representative Steve Witkoff to Moscow along with Jared Kushner to personally present this proposal to Russian leader Vladimir Putin. The media emphasizes that such a peace plan involving recognition of territorial losses could be implemented despite the concerns of Ukraine’s European partners.
This is reported by Finway
Economic Impact on Europe
Analysts note that such a scenario would have serious and lasting effects on the economy of the European Union. Ukraine’s loss of part of its territory will lead to ongoing uncertainty in the region, negatively affecting European markets for many years. Experts estimate that this could put pressure on the economic stability of the EU and complicate long-term planning for businesses and private investors.
The Issue of Reconstruction and Frozen Reserves
One of the most pressing topics remains the future of frozen Russian reserves, which amount to about $300 billion. European governments are demanding that these funds be directed towards the reconstruction of Ukraine, the costs of which have already exceeded $600 billion. However, the likelihood that Russia will agree to transfer these funds is extremely low. In this case, Ukraine’s allies will have to bear the main financial burden, and without a final resolution regarding the status of the occupied territories, private investors will be reluctant to invest in the recovery of the Ukrainian economy.
Belgian Prime Minister Bart De Wever warned that the EU’s initiative to use frozen Russian assets to finance Ukraine could create additional obstacles to reaching a potential peace agreement.
“The EU’s plan to use frozen Russian assets to finance Ukraine could jeopardize the chances of achieving a potential peace agreement altogether.”