Ukraine peace talks 'at critical stage' as Zelenskyy nears £100bn deal to fund two more years of war

The Prime Minister hosted the Ukrainian president at Downing Street on Monday, along with French President Emmanuel Macron and German Chancellor Friedrich Merz, for private talks as efforts continue to find a way to end the war with Russia.

Mr Zelenskyy said his nation "can’t manage without Americans" and "can’t manage without Europe" as peace negotiations continued.

The discussions came as Donald Trump accused Mr Zelenskyy of having failed to read the latest peace plan, saying he was "a little disappointed" in the Ukrainian leader, while insisting Russia’s Vladimir Putin was "fine with it."

Alongside negotiations to end the war, The Times reports that around £100bn in frozen assets will be made available to Ukraine within days as European leaders seek to grant Zelenskyy leverage in negotiations.

The funds, which are frozen in European bank accounts, could be used to allow Ukraine to continue the fight against Putin for up to two more years or to fund reconstruction if a peace deal is agreed.

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After the meeting of the so-called 'Coalition of the Willing', a senior Government source told The Times: “We are hopeful that a deal is going to be done in the next week or so.”

The move would include £8bn which is currently being held in UK bank accounts and would provide European leaders with reassurance amid fears Putin has the upper hand in peace talks.

In the three-year war so far, Belgium has been a sticking point in freeing up the funds over fears it could become legally liable for the sum.

The vast majority of the funds are held by Belgium, and amount to around a third of its annual GDP.

Speaking during the meeting on Monday, Starmer insisted any ceasefire in Ukraine must be "just" and "lasting," telling the other leaders: "We are at a critical stage in the push for peace.

"The principles remain the same, we stand with Ukraine, and if there is to be a ceasefire, it needs to be a just and lasting ceasefire."

Despite Mr Trump's White House criticising European leaders for having "unrealistic expectations" about the war, the Prime Minister paid tribute to the US president.

He said: "You can never get from conflict to peace by an easy, straight route. It’s always a complicated business, but I do think that we’re making progress, and I think what President Trump has been able to achieve in the last few weeks, getting it this far, has been the furthest we’ve got in the four years.

"And I therefore pay tribute to him for that, and hopefully we can make some further progress this afternoon."

Speaking during the gathering, President Zelenskyy said: "I think that now it’s very important to organise sessions to meet and discuss very sensitive issues regarding these talks (we had) in the United States.

"A lot of what we have to discuss are things that are very important for unity between Europe and Ukraine, and also unity between Europe and Ukraine and the United States.

"We can’t manage without Americans, we can’t manage without Europe and that is why we need to make some important decisions."

Mr Macron, meanwhile, insisted Ukraine's allies have "a lot of cards."

He pointed to the funding of equipment and arms for Ukraine, the Ukrainian resistance and the economic impact of sanctions imposed by the US and Europe on Russia as positive signs.

President Macron said: "Now I think the main issue is the convergence between our common positions – Europeans and Ukrainians and the US – to finalise these peace negotiations and re-engage in a new phase that means the best possible conditions for Ukraine, for the Europeans, and for collective security."

Mr Zelenskyy’s visit to London comes after his officials concluded three days of talks with their US counterparts on those proposals as the White House presses Kyiv to accept a deal.

Over the weekend, Mr Zelenskyy said he had discussed "next steps" with Mr Trump’s advisers and was "determined to keep working in good faith."

But the negotiators also acknowledged that any "real progress" will depend "on Russia’s readiness to show serious commitment to long-term peace."

Starmer has repeatedly said that Ukraine must be allowed to determine its own future, while one of his senior ministers said on Sunday that the country must not be left "toothless" in the face of Russian aggression.

However, Russia has repeatedly rejected the prospect of allied troops being stationed in Ukraine and continues to demand large swathes of Ukrainian territory in exchange for peace.

The meeting also comes in the wake of the publication of a new US national security strategy that made improving relations with Moscow one of Washington’s top priorities.

Zelenskyy too has poured cold water on the prospect of peace - saying during an online press conference on Sunday that he did not believe he had the right to cede land to Russia.

"Do we envision ceding territories? We have no legal right to do so, under Ukrainian law, our constitution and international law. And we don’t have any moral right either,” Zelensky said.

“Russia is insisting that we give up territories, but we don’t want to cede anything. We are fighting for that, as you well know.”

“There are difficult problems concerning the territories and so far there has been no compromise.”

Kremlin spokesman Dmitry Peskov welcomed the document, saying it was broadly in line with Moscow’s own vision.

On Sunday, Mr Trump told reporters that Mr Zelenskyy had yet to read the US-authored peace proposal.

"Russia is, I believe, fine with it, but I’m not sure that Zelenskyy’s fine with it. His people love it, but he hasn’t read it," he said.

Meanwhile, Foreign Secretary Yvette Cooper is in Washington for talks with her US counterpart Marco Rubio.

She is expected to focus on efforts to secure an end to the war in Ukraine, as well as UK-US co-operation on global security and the ceasefire in Gaza.

Over the weekend, at least four people were killed in drone and missile strikes while Moscow continues to target Ukrainian infrastructure in a bid to "weaponise" the cold by denying civilians access to heat and power.

A Downing Street spokesperson said: "The Prime Minister welcomed the President of Ukraine, Volodymyr Zelenskyy, the President of France, Emmanuel Macron, and the Chancellor of Germany, Friedrich Merz, to Downing Street today.

"The leaders discussed the importance of the US-led peace talks for European security and supported the progress made. They instructed their National Security Advisors to continue discussions over the coming days.

"The leaders underscored the need for a just and lasting peace in Ukraine, which includes robust security guarantees.

"The leaders agreed that, while diplomatic efforts continue, Europe must stand with Ukraine, strengthening its ability to defend against relentless attacks that have left thousands without heat or light.

"They also discussed positive progress made to use immobilised Russian sovereign assets to support Ukraine’s reconstruction.

"Following the meeting with the leaders of France, Germany and Ukraine, the Prime Minister convened a call with other European allies alongside President Zelenskyy to update them on the latest situation.

"The leaders all agreed that now is a critical moment and that we must continue to ramp up support to Ukraine and economic pressure on Putin to bring an end to this barbaric war. They agreed to keep in touch."

Dame Emily Thornberry, Foreign Affairs Committee chair, told LBC that the difficulty in reaching in a deal comes from the fact that "the Russian's don't just want the bits that they've got so far. But they also want the things they've been fighting over for now over three years and haven't been able to get".

Labour grandee Dame Emily told LBC's Tonight with Andrew Marr: "What needs to happen is actually Europe needs to show more confidence in itself, needs to flex its muscles, and needs to make it clear that actually Ukraine's security is actually Europe's security too."