The United States has circulated a 28-point peace proposal aimed at ending the war in Ukraine, outlining major territorial concessions, new security arrangements, and a phased path for Russia’s reintegration into the global economy.

The plan has triggered strong resistance from Kyiv and key European governments, while prompting immediate debate over the future of Western sanctions on Moscow.

According to officials briefed on the document, the proposal would recognize Russian control over Crimea and the occupied regions of Luhansk and Donetsk, freeze the front line in Kherson and Zaporizhzhia, and create a demilitarized buffer zone. Ukraine would be required to abandon future NATO membership and limit its armed forces to 600,000 personnel.

Economically, the plan redirects roughly $100 billion in frozen Russian assets to Ukraine’s reconstruction and envisages U.S.–Russia investment cooperation.

Russia would receive gradual, benchmark-based sanctions relief and could ultimately be invited back into the G8. However, a likely “snapback” clause would restore all sanctions if Russia violates the agreement.

Ukraine has not accepted the proposal. President Volodymyr Zelensky has signaled the terms are incompatible with Ukraine’s sovereignty and constitutional framework. European governments, including France, Germany, and the UK, have raised concerns that the draft tilts too far toward Russian demands and was developed with limited consultation.

Any settlement would require extensive legal action by the U.S., EU, UK, and other G7 states, including amendments to statutory sanctions regimes. Western officials say no sanctions changes are expected in the near term, even if negotiations continue.

PRACTICAL COMPLIANCE RECOMMENDATIONS

For exporters restricted under current Russia measures, compliance authorities stress that all existing prohibitions remain fully in force. Companies are being advised to continue operating under current rules but prepare internally for potential, phased regulatory changes if diplomacy advances.