Plans for a highly anticipated summit between US President Donald Trump and Russian President Vladimir Putin in Budapest have been indefinitely postponed, as diplomatic efforts to end the conflict in Ukraine face significant hurdles. The White House confirmed there are now “no plans” for an immediate meeting between the two leaders, following a series of diplomatic exchanges that failed to yield substantial progress toward a peace agreement.

The decision to put the Budapest summit on hold concludes a brief but intense diplomatic cycle. This began with a phone call last Thursday between Trump and Putin, during which Putin reportedly proposed a territorial exchange: Russia would cede parts of the Kherson and Zaporizhzha provinces it occupies in return for the entirety of Donetsk, a strategically vital and heavily fortified region long coveted by Moscow. Donetsk, however, is viewed by Kyiv as a critical gateway to central Ukraine.

Initially, President Trump appeared to entertain Putin’s proposal, but by Sunday, he publicly rejected it. Speaking on Air Force One, Trump declared that Donetsk should be “cut the way it is” and urged a ceasefire along the existing battle lines. “They can negotiate something later on down the line. But I said cut and stop at the battle line. Go home. Stop fighting, stop killing people,” he stated, embracing a ceasefire proposal that aligns with Kyiv and European leaders’ positions.

The lack of breakthroughs became evident after a Monday phone call between US Secretary of State Marco Rubio and Russian Foreign Minister Sergei Lavrov. Lavrov reiterated Russia's unchanging negotiating stance, referencing “understandings that were reached during the Alaska summit,” and emphasized Moscow's insistence on the complete withdrawal of Ukrainian troops from the embattled eastern regions. Russia's maximalist demands also include the recognition of full Russian sovereignty over the Donbas and the demilitarization of Ukraine — conditions that remain non-starters for Kyiv and its European partners. Lavrov suggested that merely freezing the front line would only amount to a “temporary ceasefire” and that the “root causes of the conflict” must be addressed for a “long-term, sustainable peace.”

Ukrainian President Volodymyr Zelenskyy, after meeting with Trump in Washington on Friday, a day after the Trump-Putin call — found himself in tense discussions where the idea of Ukraine making territorial concessions was reportedly floated by the White House. Ukraine firmly rejected this, and its concurrent efforts to persuade the US to supply Tomahawk cruise missiles also stalled. Zelenskyy later cautioned that Russia became “less interested” in serious negotiations when Trump delayed his decision on the Tomahawk supply. Kyiv believes these long-range missiles, with an approximate range of 1,000 miles, would allow it to strike Russian military-industrial sites and oil refineries deep inside Russia, a move the Kremlin has warned would be escalatory. Zelenskyy called the discussion around Tomahawk missiles a “strong investment in diplomacy” that compelled Moscow to engage.

Earlier on Tuesday, Zelenskyy and leaders from the UK, France, Germany, Italy, Poland, Finland, Norway, and Denmark, along with the European Commission and European Council presidents, issued a joint statement. They endorsed Trump’s call for a ceasefire along the current frontlines, emphasizing that “the current line of contact should be the starting point of negotiations.” This collective stance from Kyiv and its European allies indicates a unified front against Russia's maximalist demands, despite Kyiv's historical refusal to recognize Russian annexation of any territory. Accepting a ceasefire on existing frontlines would de facto acknowledge Moscow's occupation of about a fifth of the country.

Further diplomatic initiatives are underway, with reports circulating late on Tuesday that Ukraine and its European allies are developing a 12-point ceasefire proposal, drawing parallels to the US proposal for Gaza. This plan would reportedly involve a peace board chaired by President Trump to oversee its implementation. Beyond ceasefire terms, Ukraine has also sought the return of children taken into Russia and the handing over of prisoners of war as part of any initial ceasefire phase.

The international community is also taking steps to bolster Ukraine's long-term security and economic resilience. Thirty Western countries, led by the UK and France, have committed to providing a multinational stabilization force. This force would be tasked with policing Ukraine’s airspace and sea lanes, as well as training its ground forces, to prevent future conflicts. Furthermore, European leaders have pledged to “ramp up the pressure on Russia’s economy and its defence industry” until Russia is prepared for peace. Discussions within the EU and G7 are advancing on a plan to utilize €140 billion of immobilized Russian central bank assets, mostly held at Euroclear in Belgium. Under this scheme, Ukraine would receive these funds, structured as a loan set against future Russian reparations for war damages, to help finance its national defense from 2026, with G7 members underwriting the debts to mitigate risks for Belgium.

The postponement of the Budapest summit, following the earlier “unproductive” Alaska meeting, reflects deep divisions over peace preconditions. A senior European diplomat suggested that “the Russians wanted too much, and it became evident for the Americans that there will be no deal for Trump in Budapest,” underscoring the ongoing challenges in achieving a resolution to the protracted conflict.