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The final frontier in Ukraine’s crisis: Trump’s peace plan and the proposal for a sanitary zone

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Since its inception, the war in Ukraine has escalated into a profound crisis with far-reaching implications, not only for Eastern Europe but for the entire world. The diplomatic tensions, military interventions, and economic sanctions that have followed have underscored the precarious balance between war and peace on the European continent.

During his election campaign, former U.S. President Donald Trump made a bold assertion: “If I take office, I will end the war in Ukraine quickly.” This statement hints at a potential shift in U.S. military and material support for Europe. While the specifics of Trump’s plan remain unclear, his public rhetoric and insights from his advisors have sparked a multifaceted debate among European nations.

Trump’s stated goal is to “establish peace,” but it is evident that the U.S. aims to reduce its traditional military burdens. This could leave Europe facing a stark choice: either take on a greater role in resolving the conflict or bear the consequences of inaction. Such a scenario would force Europe, already strained by the crisis in Ukraine, to reevaluate its security framework.

At the same time, the question of sustained financial and military aid to Ukraine is testing Europe’s political resolve and economic capacity. Ukrainian President Volodymyr Zelensky has issued a stark warning: “Without financial support, we will lose.” He is urging Western allies to share the burden of the war. Without U.S. support—ranging from advanced weaponry to intelligence and operational planning—Ukraine’s military efforts against Russia would face even greater challenges. Meanwhile, Germany, a cornerstone of the EU, is grappling with whether it is prepared to assume a larger role if U.S. support diminishes. Within the European Union, the lack of a unified approach is evident, as each member state prioritizes its own interests.

What does Trump’s peace plan offer?

Donald Trump has claimed that, if elected president, he would swiftly end the war in Ukraine. During his previous presidency, Trump’s approach to NATO was marked by ambivalence. He notably pressured European countries to increase their defense spending and contribute more to the U.S.-led security umbrella. Now, as he eyes a potential return to the White House, his proposed actions regarding the Ukraine war are of direct concern to Europe. Given its geographical proximity, Europe is the primary region that would bear the consequences of any escalation or misstep in the conflict.

While the specifics of Trump’s peace plan remain undisclosed, leaks suggest that some politicians close to his advisors have discussed the creation of demilitarized zones between Ukraine and Russia. It is speculated that American troops would not be stationed in these zones; instead, they would be overseen by a European-led force. However, this scenario poses significant risks for Brussels. The establishment of such a buffer zone could inadvertently bring European states and Russia into direct confrontation, even with the slightest miscalculation.

Another proposal under consideration is the deployment of a United Nations peacekeeping force (often referred to as “blue berets”). However, the UN’s track record in conflicts like the Balkan Wars highlights the challenges of such missions. Issues such as a disorganized chain of command can undermine the effectiveness of peacekeepers on the ground. Additionally, creating a UN peacekeeping force requires approval from permanent Security Council members, including China, Russia, and the U.S., which introduces complex diplomatic hurdles. The prospect of a Russian veto in the UN Security Council—particularly on resolutions condemning Russia—remains a significant obstacle.

Within Europe itself, there are deep divisions and contradictions. Germany has pledged continued financial and military support for Ukraine, but debates persist over how much Europe can shoulder if the U.S. withdraws its backing. Ukraine, meanwhile, is in desperate need of funds, weapons, and personnel to sustain its war effort. The Ukrainian military, already outmatched by Russia in conventional power and logistics, requires far greater support from Europe. This support extends beyond cash and weaponry to include troop training, operational planning, intelligence sharing, and maintaining critical supply lines. For Europe, assuming the U.S.’s role in these areas independently would be an immense challenge. While countries like Spain, France, Poland, and Greece have called for joint military coordination, each nation has its own reservations and priorities.

In summary, while the details of Trump’s peace efforts remain unclear, the potential for their failure places Europe in a position of heightened responsibility. If U.S. support is withdrawn, European nations would need to take on greater economic and military risks to support Ukraine. Moreover, if peace negotiations collapse, the conflict could escalate into a larger-scale war, with Europe bearing the brunt of the fallout.

The Biden administration’s ATACMS decision

Since the outbreak of the war in Ukraine, U.S. President Joe Biden has approached arms aid to Ukraine with caution. Initially, he refrained from providing long-range ATACMS missiles, citing the risk of escalating the conflict into a potential “World War III.” However, Biden has now shifted his stance, greenlighting the use of these weapons for operations targeting deep inside Russian territory. This decision has been widely interpreted as an attempt to undermine former President Donald Trump’s peace initiative. While Ukraine argues that these strikes are acts of self-defense, the use of long-range missiles against Russian soil could escalate the conflict with a nuclear-armed state to an even more perilous level.

The Ukrainian military relies heavily on Western weapons and intelligence to target Russian strategic bases and air defense systems. While international law recognizes the right of an occupied nation to strike enemy logistics centers and military posts in self-defense, the situation remains delicate. The U.S. maintains that it only supports Ukraine’s “right to legitimate self-defense,” but this stance cannot obscure the fact that, in practice, the U.S. is aiding Ukraine by providing intelligence, target selection assistance, and advanced weaponry. This is precisely why German Chancellor Olaf Scholz has resisted supplying Ukraine with long-range Taurus missiles, similar to ATACMS. Scholz views it as a strategic imperative for NATO to avoid direct involvement and confrontation with Russia on the front lines.

The Biden administration’s decision also risks contradicting U.S. interests. As tensions with Russia escalate, the administration may be increasing the likelihood of a broader conflict. While the U.S. may aim to weaken Russia through attrition, the limits of this strategy remain unclear. Some commentators argue that the Biden administration is conflicted, seeking to make “final moves” on the Ukrainian front to counter Trump’s claims that he can bring peace. The U.S. withdrawal from Afghanistan and its aftermath may also be influencing Biden’s reluctance to take another significant step back. By cornering Russia, the U.S. is simultaneously drawing Europe deeper into the crisis.

Russian President Vladimir Putin’s response to these developments will be critical. Direct strikes on Russian strategic bases or airfields using Western long-range missiles could provoke a more aggressive reaction from Moscow. In an environment where nuclear threats have been repeatedly voiced, even a minor miscalculation could lead to catastrophic consequences. Some experts speculate that if Trump returns to power, Biden’s current policy could be sharply reversed, with a renewed focus on negotiations. From a strategic standpoint, it is often argued that no matter how many weapons Biden provides to Ukraine, he lacks a decisive “trump card” to fundamentally shift the balance of the war in Ukraine’s favor.

The limitations of Europe’s military capacity

One of the most pressing debates throughout the Ukraine crisis has been the extent of the European Union and NATO member states’ commitment to bolstering their own military capabilities. Former U.S. President Donald Trump has long criticized Europe, arguing that “Europeans are not paying enough for their own security.” Indeed, the NATO target of increasing defense spending to 2% of GDP faced significant resistance in many European countries. Now, discussions are even turning to higher thresholds, such as 3%. However, what this would mean in practice remains unclear. While some argue that Europe must build a conventional deterrent against Russia, viewing defense spending as a form of essential insurance, others warn that diverting massive budgets to the arms industry would come at the expense of social spending, likely provoking public backlash.

In this context, it is worth recalling the insights of Helmut Schmidt, the former Chancellor of Germany. During the Cold War, Schmidt emphasized the importance of maintaining a “military balance” but also argued that this alone was insufficient to ensure peace. He believed that military balance needed to be complemented by political compromises, arms control agreements, and confidence-building measures. In other words, investing solely in weapons is not enough; diplomacy must also play a central role. Schmidt’s legacy serves as a warning to today’s European leaders: “Strength is important, but flexible diplomacy, openness to dialogue, and active efforts to prevent conflicts from escalating are equally essential.” This principle could be applied to rebuilding de-escalation mechanisms between Russia and NATO. However, in the current climate, such dialogue seems distant, particularly as the conflict in Ukraine continues to escalate.

Moreover, the idea that “all European countries should participate in Europe’s security architecture” remains an ideal that is often voiced but rarely realized in practice. Russia’s annexation of Crimea, the ongoing conflict in the Donbas region, and its full-scale invasion of Ukraine have fundamentally undermined the notion of “accepting Russia as part of the European security system.” As a result, even if peace initiatives in this new era seek some form of “deal” with Russia, it is unclear how far Europe is willing or able to stretch to accommodate such an agreement.

Zelensky’s stillborn ‘victory plan’

At the onset of the war, Ukrainian President Volodymyr Zelensky unveiled what he called the “Victory Plan,” aiming for complete military success. His declaration, “We will push Russia back to its borders; we will not cede a single inch of our territory,” was met with widespread enthusiasm in the West. However, as the conflict dragged on, the Ukrainian army suffered significant losses, Russia’s long-term strategy took hold, and it became evident that Western support was not unlimited. The United States and Germany, in particular, have repeatedly cautioned that Ukraine cannot afford the risk of a major escalation by launching large-scale attacks on Russian territory.

In the 10-point peace plan Zelensky presented, the primary condition is the return of all Ukrainian territory, including regions annexed by Russia. Moscow, however, claims legitimacy over these areas through referendums in Crimea and Donbas. This fundamental disagreement leaves the question, “Is there common ground for compromise?” unanswered. Furthermore, Zelensky has ruled out direct talks with Russian President Vladimir Putin, even issuing a decree declaring Putin’s administration illegitimate. This stance effectively blocks the path to a diplomatic solution from the outset. Nevertheless, some European leaders support Zelensky’s proposal to organize a peace conference, arguing that Russia’s participation would be beneficial.

This impasse has created an opening for former U.S. President Donald Trump’s rhetoric: “If I am elected, I will sit down and talk.” In both Europe and the United States, there is growing sentiment that negotiations are the only viable way to end the war. However, a ceasefire—freezing the conflict—is a prerequisite for any talks. The direction of such negotiations, the terms under which Ukraine and Russia might reach an agreement, and the guarantees Europe would provide remain deeply uncertain. The deployment of a UN peacekeeping force, for instance, would require Russia to refrain from using its veto in the Security Council.

European leaders now face a critical choice: support Trump’s peace initiatives or align with President Joe Biden’s strategy of “pushing Russia back.” Both scenarios carry significant risks for Europe. If Trump succeeds, a demilitarized zone could be established between Ukraine and Russia, but European troops would likely be required to secure it. If Biden’s policy prevails, Europe could become a target for Russia amid escalating tensions, especially with the use of long-range weapons.

Moreover, institutions like the European Union, NATO, and the United Nations are grappling with their roles in this evolving security architecture. Whether Europe will develop an independent military structure or deepen its defense cooperation under the U.S. umbrella remains unclear.

The greatest irony in this situation is that the hope for peace appears to hinge on two uncertain factors: Vladimir Putin’s restraint and Donald Trump’s potential election as president, which could lead to a reversal of Biden’s policies. How sustainable or healthy this is for Europe is a matter of intense debate.

Diplomacy

North Korean hackers blamed for record $6.3bn Binance theft

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The world’s largest cryptocurrency exchange, Binance, has suffered an industry-record cyberattack amounting to $6.3 billion.

According to The Guardian, experts say the likely perpetrator is the Democratic People’s Republic of Korea (DPRK).

Binance moved urgently to freeze the affected assets, and approximately $3 billion has been identified so far.

The company has not provided any update regarding the remaining $3.3 billion.

Binance co-founder Yi He said the company would cover “all cyberattack losses.”

Analysts attributed the assault to state-sponsored hackers from the DPRK. According to The Guardian, the DPRK has a history of cryptocurrency theft and, according to the FBI, was behind the theft of approximately $1.5 billion in virtual assets from a Tokyo-based cryptocurrency exchange last year.

That incident had set the record as the largest cryptocurrency theft recorded up to that point.

Crypto analytics firm TRM attributed the attack “with high confidence” to TraderTraitor, North Korea’s elite hacking unit.

Another analytics entity, Chainalysis, also linked the heist to TraderTraitor.

Binance has not explicitly confirmed that funds were stolen. However, TRM and Chainalysis claimed that more than $6 billion had been taken. The company stated that its teams were “working around the clock” to resolve the issue.

According to Binance’s statement, initial investigation findings revealed that the security breach may have begun with a hacked laptop belonging to one of Binance’s engineers, enabling an attacker to gain access to one of the company’s systems and execute unauthorised withdrawals.

Binance, which allows users to buy, sell, and trade digital assets, has 335 million registered users worldwide, and the total value of assets under its custody was approximately $162.8 billion, according to the exchange’s 2025 annual report.

“The bottom line is that your funds are safe and we are covering all losses,” said Richard Teng, one of Binance’s co-chief executives.

In a statement, the company said:

“As a precautionary measure, all deposits and withdrawals have been temporarily suspended while our security teams, with close support from law enforcement and industry partners, conduct checks, secure wallet infrastructure, and track affected assets.”

Markets reacted immediately early in the Asian trading session on Friday, with bitcoin, by far the most popular crypto asset, dropping by more than 3% to a six-week low of $76,368.

Shares of crypto exchange Coinbase Global lost 4.8%, while shares of bitcoin buyer Strategy fell by about 6% in extended trading on US markets.

Binance was founded in 2017 by Changpeng Zhao. Zhao pleaded guilty in the US in 2023 over failures to prevent money laundering on the platform. Donald Trump pardoned him in 2025.

In a post shared on X on Thursday, Zhao said, “User funds are safe!” but added that the incident “looks like a hack on Binance.”

Stating that he no longer manages Binance, Zhao said, “As a shareholder, I expect all user funds to be fully covered.”

According to Chainalysis and other industry experts, if confirmed, this could become the world’s largest cryptocurrency theft.

“This is the biggest hack in history,” said Aravind Srinivasan, head of the systematic OTC business at major crypto market maker GSR.

Analysts noted that beyond the potential loss of assets, the security breach could have broader repercussions across the cryptocurrency market.

Indeed, the cryptocurrency market had already been under pressure recently due to interest rate increases in the US and weakening demand from exchange-traded fund buyers.

Binance operates a secure asset fund for users; as stated on the company’s website, this fund is an emergency reserve held entirely in bitcoin, intended to protect user assets in the event of security breaches.

Stablecoin issuer Tether announced that it had frozen approximately $1.57 billion in assets linked to the incident, while Circle froze more than $800 million.

World Liberty Financial, a crypto firm linked to Trump and his family, said in a statement on Thursday that it was collaborating with cryptocurrency custody provider BitGo to freeze funds stolen in what it described as the Binance attack.

Yi from Binance said $27 million in stablecoins and roughly $2 million worth of World Liberty tokens had been frozen.

This development adds to a successive series of cryptocurrency thefts. According to researchers at TRM Labs, attackers stole $2.9 billion worth of cryptocurrency across roughly 150 attacks last year.

In September, cryptocurrency exchange Bitget announced that about $350 million worth of cryptocurrency had been stolen from its platform, highlighting the industry’s vulnerability to hackers.

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Canada pursues closer EU partnership as summit opens

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Canadians are weighing the economic opportunities, regulatory hurdles, and questions of identity that closer cooperation with the EU would bring.

Canadian Prime Minister Mark Carney is hosting European Commission President Ursula von der Leyen and European Council President António Costa for a two-day summit focused on bolstering trade, security, technology, and people-to-people ties.

The leaders are expected to advance an ambitious new partnership that includes proposals referred to as an “Alliance of the Future” between Canada and the EU, promoted as an “ever closer union”.

So, what do Canadians think about this new agreement?

According to a February 2026 poll by survey firm Abacus Data, reported by Rapporteur, 74% of Canadians support closer cooperation with the EU on foreign policy, defence, and economic priorities. Only 10% oppose it, while 15% remain undecided.

This broad support masks diverging political attitudes. According to the poll, 60% of Liberal voters rank the EU among Canada’s top two partners, compared to 36% who include the US on that list.

Among Conservatives, the figures are reversed: 65% prioritise the US, while the proportion favouring the EU stands at 36%.

According to the Abacus Data survey, 48% of Canadians support EU membership, while 28% oppose it.

In remarks to Rapporteur, the polling firm said:

“The US still occupies a central place in the Canadian mindset, but this situation continues to change. Today it is still seen as the most important partner, but it is no longer in an uncontested position.”

Catherine Fortin LeFaivre, Vice President of Strategic Policy and Global Partnerships at the Canadian Chamber of Commerce, is eager to turn towards Europe during the Donald Trump era, yet harbours concerns about EU bureaucratic obstacles:

“Canada’s relationship with the US will always be vital, but the last two years have made the need for diversification impossible to ignore. Europe is a natural place to deepen economic ties. But what we do not want is to open the door to an added layer of regulation.”

Ontario farmer Hannah Hutchings shares this concern.

“The US is still an indispensable business partner,” Hutchings said, arguing that closer ties with the EU could help Canadian agricultural goods reach European consumers, provided they deliver economic benefits to farmers without generating further competition and regulation.

Although the EU-Canada Comprehensive Economic and Trade Agreement (CETA), applied provisionally since 2017, has reduced trade barriers, it has not opened every market to Canadian exporters.

Michael Harvey, Executive Director of the Canadian Agri-Food Trade Alliance, said: “Closer relations offer an opportunity to work on trade possibilities with the EU and give us greater leverage in negotiations. For certain agricultural products, non-tariff barriers still block market access because the EU wants to impose its own criteria on the entire world.”

Harvey pointed to EU restrictions on growth hormones and crop protection products:

“In this period of rapprochement, we must work through these issues. Closer ties are received largely positively by the public, but the details will make the difference. This must be a win-win situation for both sides.”

Noting that she also sees opportunities for collaboration in agricultural innovation and sustainability, Hutchings drew attention to shared challenges such as rising costs, labour shortages, climate change, and attracting younger generations into farming.

For Canadian businesses, Europe’s appeal also lies in its predictability.

“Forecasting the cost of doing business with the US has become difficult. Europe is more reliable and makes it possible to conduct business planning, understand market entry costs, and anticipate trading conditions,” Fortin LeFaivre said.

The Canadian Chamber of Commerce has developed a tool named “Trade Explorer”, which helps businesses identify new export opportunities, particularly in Europe.

Jonathan Audet, co-founder and CEO of Quebec-based ski manufacturer Ferreol, entered the French market in late 2025 and generated 5% of his sales there.

Audet anticipates that his European market share will eventually outstrip Canada:

“The business environment is more favourable than in the US. Forging closer ties with the EU will boost exports and allow us to build commercial partnerships and co-innovation partnerships.”

However, Audet wants administrative procedures simplified, particularly when transporting product samples to trade missions in Europe.

“We are not going to sell them; we are only taking them to display the products, but from a customs perspective, this process is complicated. I have to apply for an ATA Carnet, a kind of passport for goods,” he said, citing delays, fees, and airport customs procedures.

Students see opportunities as well. Alex Simion, a Carleton University student in Ottawa and chair of the student union board of directors, supports easier access to education and employment opportunities in Europe.

“Carleton is a university with a large engineering student body. Students enthusiastically welcome the establishment of closer ties with the EU,” Simion said, calling for simplified visa procedures and improved access to student housing.

Yet uncertainty has not disappeared. “Most of us started high school while the Brexit process was unfolding, so growing up, we saw that something was wrong in the EU,” Simion said.

For him, this debate also raises deeper questions about Canadian identity.

“What does it mean to be Canadian? We are still trying to figure that out,” Simion said, questioning whether EU membership would erode Canada’s distinct identity:

“A closer bond makes it even more important that we find an answer to what being Canadian means before joining the EU.”

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Ukraine economy set to shrink for first time since 2022, bank says

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Ukraine’s economy is set to shrink for the first time since 2022, according to a Bloomberg report citing projections from the National Bank of Ukraine.

The central bank forecasts that the country’s gross domestic product will contract by 0.4% by the end of this year.

The National Bank of Ukraine had previously projected that the economy would grow by 1.8%.

The country’s last economic contraction was recorded in 2022, when gross domestic product plunged by more than 30%.

The National Bank of Ukraine attributed the worsening forecast to Russian strikes, which it said led to a “sharp drop in business activity.”

The Russian Defence Ministry has repeatedly stressed that the strikes target only Ukrainian military and energy facilities, as well as infrastructure linked to them.

President Vladimir Putin said that the Russian military’s strikes against Ukrainian infrastructure were effective and timely actions because they helped troops resolve the combat tasks before them.

The National Bank of Ukraine expects the economy to return to a 0.4% growth path next year, driven by rising investment in the defence industry and other projects.

According to Bloomberg, the National Bank of Ukraine raised its policy rate following the deteriorating economic forecasts.

The central bank’s updated assessments point to higher inflation than previously expected.

Government cuts spending and switches to austerity mode

Ukrainian Prime Minister Sergey Koretskiy announced in late September that the country had switched to a maximum austerity regime and postponed all non-urgent spending.

Koretskiy had previously stated that the state of the country’s public finances was nearing a critical level.

Ukraine’s 2026 budget was approved with a deficit of approximately 1.9 trillion hryvnias, or $47.5 billion.

Describing the upcoming 2026 winter as “objectively difficult” for the country, Koretskiy pointed out that the funding gap in Ukraine’s energy sector remained at around 650 million euros ahead of the winter period.

The Ukrainian Finance Ministry estimates that the country will require nearly $146 billion in external financing between 2026 and 2029.

The International Monetary Fund, meanwhile, projects that Ukraine will face a financing gap of up to $54 billion through 2029.

At the beginning of the year, the European Union agreed on a 90 billion euro loan package for Kyiv, allocating 60 billion euros for defence spending and 30 billion euros for budget and economic support.

As of 14 October, Ukraine had received only 19.8 billion euros of the agreed loan, representing just 22% of the total amount.

The Moscow government condemns military support provided to Kyiv.

Russian Security Council Secretary Sergey Shoigu, assessing the EU loan to Ukraine, claimed that this policy was driving European states toward “the ultimate loss of their sovereignty.”

President Vladimir Putin stated that “the entire West” was helping Ukraine.

Putin said Russia reserves the right to use weapons against the military facilities of countries that allow their delivered weapons to be used in attacks on Russian territory.

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