Trump administration proposes a plan to rebuild Ukraine and return Russia to the global economy; some in Europe say 'it's like Yalta' - WSJ
Kyiv • UNN
The Trump administration has handed European counterparts documents outlining its vision for Ukraine's reconstruction and Russia's return to the global economy. The proposals have sparked a fierce struggle between America and its allies in Europe.
In recent weeks, the administration of US President Donald Trump has sent its European counterparts a series of one-page documents outlining its vision for Ukraine's recovery and Russia's return to the global economy, The Wall Street Journal reports, writes UNN.
Details
These proposals, the publication writes, have sparked a fierce struggle at the negotiating table between America and its traditional allies in Europe. "The outcome could fundamentally change the continent's economic map," the publication says.
The US plan, as indicated, is outlined in annexes to current peace proposals, which are not public but have been described to The Wall Street Journal by American and European officials.
"The documents detail plans by American financial companies and other enterprises to use about $200 billion in frozen Russian assets for projects in Ukraine, including the construction of a new large data center that will operate from a nuclear power plant currently occupied by Russian troops," the publication says.
"Another annex presents a general US plan to lift the Russian economy out of crisis, which includes investments by American companies in strategic sectors, from rare-earth mining to Arctic oil drilling, as well as facilitating the resumption of Russian energy flows to Western Europe and the rest of the world," the publication writes.
Some European officials who reviewed the documents said they were "unsure about the seriousness of some US proposals." One official compared them to President Trump's vision of building a Riviera-style residential complex in Gaza. Another, speaking of the proposed US-Russian energy deals, called it an economic version of the 1945 conference where the victors of World War II divided Europe. "It's like Yalta," he said.
A White House spokesman said Trump and his team are working to finalize a deal to end the war, which the president said has dragged on for too long. In a phone call on Wednesday, Trump discussed the peace process with French President Emmanuel Macron, German Chancellor Friedrich Merz, and British Prime Minister Keir Starmer.
On Wednesday, Trump told reporters that he was considering attending a meeting in Europe this weekend. "I think we've had some disagreements about people, and we'll see how it turns out," he said. "We don't want to waste time."
Europe, which has sought to wean itself off Russian gas since Russia's invasion of Ukraine in 2022 to deprive the Kremlin of military reserves and reduce its dependence on a strategic rival, is reluctant to resume purchasing energy from a country it considers its greatest security threat.
European officials want to use the same frozen Russian funds held in European institutions to provide a loan to Ukraine.
The clash at the negotiating table is now not only about borders, but increasingly about business – and, strangely enough, it pits not only Russia against Ukraine, but also the US against its traditional allies in Europe.
Earlier, the publication reported that "American companies closely associated with the Trump administration are seeking to profit from the American peace plan."
The German government is trying in every possible way to explain that European sanctions prohibit any work or financial transactions related to the repair or reuse of Nord Stream.
European officials fear that "the US approach will give Russia the breathing room it needs to rebuild its economy and military." A new assessment by a Western intelligence agency, reviewed by the publication, states that Russia has technically been in recession for six months, and that the challenges of managing a wartime economy while controlling prices pose a systemic risk to its banking sector.
"If the American strategy prevails, it will overturn Europe's own plans to support the Ukrainian government in wartime and further entrench Russia's economic isolation," the publication writes. As a result, according to several officials, "a frantic race will begin to move forward before the US imposes its own arrangements."
American officials involved in the negotiations say that Europe's approach "will quickly deplete frozen funds." Washington, on the other hand, "will bring in Wall Street executives and billionaires from private investment funds to invest these monies and expand the amount of funds available for investment," the publication writes. One official involved in the negotiations said that under American management, the amount could grow to $800 billion. "We really understand financial growth," the official said.
On Wednesday, Ukrainian President Volodymyr Zelenskyy announced that he had held productive talks with BlackRock investment firm CEO Larry Fink.
"The US negotiating team views joint economic activity and energy interdependence as the cornerstone of its 'business for peace' philosophy: for example, Ukrainian data centers will receive energy from the Zaporizhzhia nuclear power plant, which is currently occupied by Russia and is the largest in Europe," the publication says.
German Chancellor Friedrich Merz said on Monday at a meeting on Downing Street in London with Zelenskyy and the leaders of France and Great Britain that he was "skeptical of the US proposals."
Last week, the European Parliament and member state governments finalized a legislative agreement to gradually phase out all Russian pipeline gas supplies within two years.
"The transatlantic debate overturns nearly half a century of US and European policy toward Moscow," the publication writes. US presidents from Ronald Reagan to Trump during his first term pressured European allies to rethink their dependence on Moscow for commodities, primarily gas, the publication points out.
Europe, on the contrary, adhered to a policy called Wandel Durch Handel - "Change Through Trade" - the belief that economic ties between the West and Moscow would deter the Kremlin from waging war and even help export democracy to Russia. Trump, during his second term, is making a similar bet, with the difference that the administration does not expect Russia to become a democracy, the publication writes.
The accelerated schedule of shuttle diplomacy and summits in recent weeks, the publication notes, indicates that "the debate is rushing to a frantic conclusion."
Steve Witkoff, Trump's envoy for Russia, and Jared Kushner, his son-in-law, consulted with top Wall Street executives to determine how to revive Ukraine's shattered economy. "Their plans, presented to the Ukrainians, include a proposal for veterans to lay down their arms and be paid Silicon Valley-level salaries managing some of the world's most advanced data centers built by American companies." Ukraine's chief negotiator, Rustem Umerov, it is noted, "was a regular guest at Witkoff's luxurious Miami estate."
"European leaders held a phone call with Witkoff today and will meet in Paris over the weekend. On Monday, they will gather again in Berlin. Witkoff and Kushner will participate in these conferences via video link," the publication says.
Last week, the two Americans spent several hours with Kremlin head Vladimir Putin, arguing that Russia needs to demonstrate its willingness to end the war diplomatically before it can benefit from the easing of sanctions and investments that a peace agreement could bring, the publication writes.