Progress that hit a wall: Witkoff in Davos admitted that the peace talks have come down to one ‘unsolvable’ issue – territories and security guarantees

U.S. President’s special envoy Steve Witkoff said at the World Economic Forum in Davos that there has been “substantial progress” in talks to end the Russia–Ukraine war. According to him, the discussion has effectively narrowed to one key block of disagreements.

That block concerns territorial integrity, sovereignty, and security guarantees. Russia insists on recognition of the new territories and Ukraine’s neutrality, while Ukraine demands a full troop withdrawal and compensation for damage — these positions are still blocking movement toward an agreement.

“We’ve narrowed the problem down to one issue… and that tells me it can be solved,” Witkoff said, stressing readiness to seek compromise and noting Volodymyr Zelensky’s involvement.

In parallel, Witkoff voiced an economic initiative attributed to Donald Trump: creating a tariff-free free trade zone for Ukraine, which would provide direct access to the U.S. market and encourage companies to relocate production to the region. According to sources, in January 2026 Zelensky also proposed discussing a zero-tariff regime as part of postwar recovery, including an option for special terms for certain industrial regions.

The negotiating track this week shifted to Moscow: on the evening of January 22, Witkoff, Jared Kushner, and Peace Council adviser Josh Grunbaum arrived there to meet Vladimir Putin and discuss a draft document previously agreed by the U.S. with European partners and Ukraine. After the visit, the delegation headed to the UAE.

In Abu Dhabi, working groups have been formed on military and economic issues to work out the details of a ceasefire and future reconstruction. The U.S. and Ukraine are also relying on an earlier framework for long-term cooperation: the U.S.–Ukraine Reconstruction Investment Fund (signed in April 2025) is expected to become fully operational in early 2026 and is linked to agreements on critical minerals.

At the same time, experts note that the idea of a full tariff-free FTA with the United States would require alignment with EU rules given Ukraine’s course toward European integration. Officially, the current stage is described as preliminary: discussions of the regime’s parameters continue on platforms like Davos, but the sides have not yet reached specific terms.