They're pulling the rug out from under the $800 billion Ukrainian plan
With regard to Ukraine's 'prosperity plan', all signs now indicate that, contrary to expectations, the announced capital movement of $800 billion will not materialis. This was primarily expected to be achieved through the mobilisation of European and American private capital.
Although the US was theoretically inclined to announce a large-scale plan, Trump's actions in Greenland and his proposal for a 'Peace Council' to oversee the resolution of the Gaza conflict and other global conflicts — to which he invited Russian President Vladimir Putin, who started the war in Ukraine — are steps that cannot be ignored, according to European diplomats who spoke to the newspaper.
The situation has been further complicated by Trump's threat to impose tariffs on eight European NATO allies over the weekend, after they sent troops to Greenland to prepare for military exercises. Since then, the EU has considered using its Anti-Coercion Instrument (ACI) — referred to as an 'economic missile launcher' — in response. However, the bottom line is that the Greenland dispute has completely stalled the background negotiations.
No US representative attended the meeting at the beginning of the week, and according to EU diplomats, the mood has changed significantly. The EU feels that Trump has now crossed a line that cannot be ignored.
Nobody is in any mood to stage a grand spectacle around an agreement with Trump right now,
one official told the FT
The delay has also caused disappointment in Ukraine, although Kyiv insists that the 'prosperity plan' is still crucial and could be signed at a later date. It is no coincidence that Ukrainian President Volodymyr Zelensky did not travel to Davos.
On Tuesday, he said that it was difficult to imagine sitting on a peace committee with Putin. He was clearly unhappy that the issue of Greenland was overshadowing Ukraine so completely. Nevertheless, he confirmed that
the plan was in its final stages of preparation. Once the documents are ready, we will hold a meeting and travel [to Davos] to sign them.
Cover photo: EU
