European officials have slammed a key part of a draft peace plan prepared by US President Donald Trump’s envoy, Steve Witkoff, together with Russian representative Kirill Dmitriev.
The proposal calls for using frozen Russian assets to rebuild Ukraine after a ceasefire – with Washington taking 50% of the profits from the reconstruction projects.
Politico reports that EU diplomats fear the plan could undermine Europe’s own work on a “reparation loan” mechanism that would direct frozen Russian assets to Ukraine without giving the United States control or profit.
A former French official told Politico the proposal was “scandalous,” saying Europe is trying to find a fair and legal way to use frozen Russian funds for Ukraine, while Washington “wants to make money off it.”
Another senior EU official stressed that Trump has no authority to unfreeze Russian assets held in Europe. One high-ranking European politician went even further, telling the outlet that “Witkoff needs to see a psychiatrist.”
Belgium’s position has already made the issue difficult. A large share of the frozen Russian assets is stored there, and Brussels fears retaliation from Moscow.
EU diplomats now worry the US plan will make it even harder to secure Belgium’s approval for the reparation-loan scheme.
One EU official warned that Washington’s proposal could be used as an argument against Europe’s plan, adding that the notion of America seeking to profit from assets held in Europe sounded like “classic Trump.”
The American draft peace plan goes far beyond financial issues. It also proposes giving Russia control over Crimea and the Donbas – including areas not currently occupied by Russian forces. It calls for major cuts to Ukraine’s Armed Forces, a legal ban on joining NATO, a prohibition on foreign peacekeepers, and a permanent non-nuclear status.
In exchange, Russia would receive a phased lifting of sanctions, a return to the G8, and amnesty for war crimes.
European leaders have already rejected the core parts of the plan in calls with President Volodymyr Zelensky.
They said Ukraine must keep a military strong enough to defend its sovereignty, and that the current front line should be the basis for any talks.
President Volodymyr Zelensky, Trump said on Friday, “will have to come to terms” with a 28-point “peace” plan that critics across Washington and Kyiv say bears Moscow’s fingerprints.
He insisted that “we think we have a way of getting peace,” before adding the line that now hangs over Kyiv like a deadline stamped in red ink: “He’s going to have to approve it.”
And with that, he gave Ukraine a Thanksgiving ultimatum – agree by Thursday, or face consequences the administration has not yet spelled out but has repeatedly telegraphed.
Zelensky warned Friday that the country faces “one of the toughest moments in its history,” adding that he is ready to work with the Trump administration to achieve a “just and lasting peace.”