US and Ukraine reach consensus on key issues to end war with Russia but territorial disputes remain

The US and Ukraine have reached consensus on several critical issues aimed at ending the conflict with Russia, Ukraine President Volodymyr Zelenskyy says. 

But sensitive issues around territorial control in Ukraine's eastern industrial heartland, along with the management of the Zaporizhzhia nuclear power plant, still remain unresolved. 

For the first time, Mr Zelenskyy outlined the main points of a draft 20-point framework peace proposal discussed by Ukraine and the US, which he said could become the basis of future agreements to end war with Russia.

After weeks of talks to modify an earlier 28-point draft seen as supporting many of Russia's main demands, Mr Zelenskyy said that most positions had been brought significantly closer. 

The draft proposal, which reflects Ukraine's wishes, intertwines political and commercial interests to safeguard security while boosting economic potential.

Kremlin spokesperson Dmitry Peskov said that Moscow would set out its position based on information received by Russian presidential envoy Kirill Dmitriev, who met with US envoys in Florida last weekend and has briefed Russian President Vladimir Putin.

But Mr Peskov refused to be drawn on Russia's reaction to the proposals, or the exact format of the documents.

"All the main parameters of the Russian side's position are well known to our colleagues from the United States," he said.

At the heart of the negotiations lies the contentious territorial dispute concerning the Donetsk and Luhansk regions, known as the Donbas. 

Russia has captured most of Luhansk and about 70 per cent of Donetsk.

Mr Putin has said in recent weeks that his conditions for peace are that Ukraine should cede the 5,000 square kilometres of Donbas that it still controls and that Kyiv should officially renounce its intention to join the NATO military alliance.

The territory was "the most difficult point", Mr Zelenskyy said.

In a bid to facilitate compromise, the US has proposed transforming these areas into free economic zones. 

Ukraine insists that any arrangement must be contingent upon a referendum, allowing the Ukrainian people to determine their own fate. Ukraine is demanding the demilitarisation of the area and the presence of an international force to ensure stability, Mr Zelenskyy said.

Power plant struggle

How the Zaporizhzhia nuclear power plant, the largest plant in Europe, which is under Russian occupation, will be managed is another contentious issue. 

The US is proposing a consortium with Ukraine and Russia, with each party having an equal stake in the enterprise.

"It is clear that for Ukraine, this sounds very unsuccessful and not entirely realistic," Mr Zelenskyy said.

Ukraine offered an alternative proposal, that the plant be operated by a joint venture with the US, in which the Americans can determine independently how to distribute their 50 per cent share.

Ukraine is also proposing that the occupied city of Enerhodar, which is connected to the Zaporizhzhia power plant, be a demilitarised free economic zone, Mr Zelenskyy said.

Mr Zelenskyy said billions of dollars in investment were needed to restart the plant, including restoring the adjacent dam.

On Wednesday, Russia's defence ministry said it had captured the settlement of Zarichne in Ukraine's eastern Zaporizhzhia region.

A free economic zone compromise

The draft states that the contact line, which cuts across five Ukrainian regions, should be frozen once the agreement is signed.

Ukraine's stance was that any attempt to create a free economic zone must be ratified by a referendum, affirming that the Ukrainian people ultimately hold the decision-making power, Mr Zelenskyy said. 

That process will require 60 days, he added, during which time hostilities should stop to allow it to proceed.

The draft also proposes that Russian forces withdraw from Dnipropetrovsk, Mykolaiv, Sumy, Kharkiv regions, and that international forces be located along the contact line to monitor the implementation of the agreement.

"Since there is no faith in the Russians and they have repeatedly broken their promises, today's contact line is turning into a line of a de facto free economic zone, and international forces should be there to guarantee that no one will enter there under any guise — neither 'little green men' nor Russian military disguised as civilians," Mr Zelenskyy said.

Security guarantees for Ukraine's partners

The document proposes that Ukraine will be provided with "strong" security guarantees that mirror NATO's Article 5, obligating Ukraine's partners to act in the event of renewed Russian aggression.

Mr Zelenskyy said that a separate bilateral document with the US would outline these guarantees. 

This agreement will detail the conditions under which security will be provided, particularly in the event of a renewed Russian assault, and will establish a mechanism to monitor the ceasefire.

This mechanism will utilise satellite technology and early warning systems to ensure effective oversight and rapid response capabilities.

The draft contains other elements, including keeping Ukraine's army at 800,000 during peacetime and nailing down a specific date for inclusion in the European Union.

Elections and boosting the economy

The document proposes accelerating a free trade agreement between Ukraine and the US once the agreement is signed. 

The US wants the same deal with Russia, Mr Zelenskyy said.

Ukraine would like to receive short-term privileged access to the European market and a robust global development package that will cover a wide range of economic interests, including a development fund to invest in industries including technology, data centres, and artificial intelligence, as well as gas.

Also included are funds for the reconstruction of territories destroyed in the war.

"Ukraine will have the opportunity to determine the priorities for distributing its share of funds in the territories under the control of Ukraine," Mr Zelenskyy said. 

The goal will be to attract $US800 billion ($1.19 trillion) through equity, grants, loans, and private-sector contributions.

The draft proposal also requires Ukraine to hold elections after the signing of the agreement.

Ukraine is also asking that all prisoners since 2014 be released at once, and that civilian detainees, political prisoners and children be returned to Ukraine.

AP, Reuters and ABC