US President Donald Trump has initiated a high-stakes push for peace in Ukraine, with plans for a summit with Russian President Vladimir Putin in Alaska on August 15th to discuss a potential ceasefire. This marked the first talks between the two leaders since 2021. Trump, who repeatedly claimed during his 2023-2024 campaign that he would end the Ukraine crisis within 24 hours of winning the presidency, views this summit as his latest attempt to de-escalate the conflict.

The possibility of a breakthrough remains uncertain, as the leaders approach the talks from sharply different positions. The White House has billed the summit as a crucial effort to end the Ukraine crisis, following a three-hour working meeting between Putin and Trump's special envoy, Steve Witkoff, in Moscow. Putin recently offered the Trump administration a broad ceasefire proposal, reported by The Wall Street Journal, which demands significant territorial concessions from Kyiv and international acceptance of Russia's claims in exchange for a halt to fighting. Trump himself suggested that "swapping of territories" could be part of the deal, a phrase that immediately drew strong opposition from Ukraine and its allies.

Ukraine has vehemently rejected any arrangement involving territorial cession. President Volodymyr Zelensky criticized the Alaska talks for excluding his government, emphasizing that lasting peace cannot be achieved without Ukraine's direct participation. He stated that any decisions made without Ukraine are "dead decisions" and will never work. European capitals echoed this sentiment, with leaders from the European Commission, France, Italy, Britain, Germany, Poland, and Finland issuing a joint statement affirming that Ukraine's internationally recognized borders cannot be changed by force and that Ukraine must be directly involved in any negotiations concerning its sovereignty.

Following his meeting with Putin in Alaska, Trump held intensive talks with Ukrainian President Volodymyr Zelensky and European leaders at the White House on August 18, 2025. After these "very good" meetings, Trump confirmed he had spoken by phone with Putin to arrange a three-way peace summit between himself, Putin, and Zelensky at a location to be determined. Zelensky expressed his readiness for what would be his first face-to-face talks with Putin since the conflict began nearly three and a half years ago.

During these discussions, Trump indicated that security guarantees for Ukraine were discussed, with Europe expected to take the lead in coordination with the United States. While Trump expressed optimism about resolving Russia's invasion, stating that a resolution would be known "in a week or two weeks," the presence of European leaders at the White House meeting underscored ongoing nervousness about Trump's pressure on Kyiv to make concessions. French President Emmanuel Macron called for a separate four-way meeting including Europeans to address the conflict, and German Chancellor Friedrich Merz contradicted Trump, advocating for a truce before any full peace deal and cautioning against forcing Ukraine to surrender territory.

Achieving a workable ceasefire is complex, as Russia controls significant fortified territory, and Ukraine remains committed to regaining its land. A halt to fighting would require agreement on troop withdrawals, security guarantees, and the future status of disputed regions—issues that have defied resolution since 2022. Without clear enforcement mechanisms, experts warn that any truce could quickly unravel. The outcome of these diplomatic efforts, whether leading to resolution or entrenching a fragile stalemate, depends on the leaders' ability to bridge deep divides amid hardened positions and a severe lack of trust.

In related news, stock markets traded in a narrow range and oil prices dipped after initial reports of Trump's talks with Ukrainian and European leaders. While hopes for a breakthrough rose, equity investors largely remained on the sidelines. Japan's Nikkei briefly hit a record high before retreating, while other Asian and European markets showed mixed performance. SoftBank shares fell after an investment announcement related to Intel. Investors are now looking to a speech by US Federal Reserve chief Jerome Powell for clues on future interest rates, following mixed inflation data.