President Donald Trump's 28-point peace plan for Ukraine, drafted by his envoy Steve Witkoff, has angered European diplomats and officials over a clause that would allow the U.S. to manage $100 billion in frozen Russian assets meant to "be invested in U.S.-led efforts for Ukraine's reconstruction and investment," reported Politico.
The document also said the U.S. "will receive 50% of the profit from this activity. Europe will add another $100 billion to increase total investment available for Ukraine's recovery. Frozen European-held Russian funds will be unfrozen."
The remainder of the assets would be invested in "a separate U.S.-Russia investment instrument, to be used for joint American-Russian investment projects in sectors strengthening global stability and mutual economic interests."
The Witkoff idea is, "of course, scandalous," a former French official told the news outlet.
"The Europeans are exhausting themselves trying to find a viable solution to use the assets for the benefit of Ukrainians and Trump wants to profit from them. This proposal is likely to be rejected by everyone."
A senior EU official in Brussels told Politico that Trump has no power to unfreeze assets held in Europe.
Most of the assets are held in Belgium, which has demanded stronger guarantees against the risk of Russian retaliation.
Kaja Kallas, the European Union's top diplomat, told Trump's team that the plan will fail without support from both Ukraine and European governments.
"For any peace plan to succeed, it has to be supported by Ukraine, and it has to be supported by Europe," Kallas told reporters in Brussels Thursday.
"The pressure must be on the aggressor, not on the victim. Rewarding aggression will only invite more of it."
Ukraine's Foreign Minister Andrii Sybiha told European ministers at a private meeting in Brussels that it was clear Russia had dictated the terms of the plan.
"The bottom line is that any peace plan is not doable if it is based on appeasement of the aggressor," he said, according to a person directly familiar with his remarks, reported Politico.
"This could only bring more war and brutality to Ukraine and all of Europe."
The proposal, originating from negotiations between Washington and Moscow, appeared decidedly favorable to Russia, which started the war nearly four years ago by invading its neighbor.
A side agreement aimed to satisfy Ukrainian security concerns by saying a future "significant, deliberate and sustained armed attack" by Russia would be viewed as "threatening the peace and security of the transatlantic community."
The agreement, which was detailed by a senior U.S. official who was not authorized to publicly discuss the matter, does not obligate the United States or European allies to intervene on Ukraine's behalf, although it says they would "determine the measures necessary to restore security."
The proposal also opens the door to lifting sanctions on Russia and returning it to what was formerly known as the Group of Eight, which includes many of the world's biggest economies.
Russia was suspended from the annual gathering in 2014 following its annexation of Crimea, a strategically important peninsula on the northern coast of the Black Sea that is internationally recognized as part of Ukraine.
Newsmax wires contributed to this report.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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