At the G7 summit in Evian-les-Bains, France, German Chancellor Friedrich Merz and Ukrainian President Volodymyr Zelensky jointly informed US President Donald Trump that Ukraine is prepared to enter peace negotiations with Russia. The catch: Kyiv won’t be handing over the Donbas region as the price of admission.

What happened at the G7

Merz confirmed at the summit that he and Zelensky had directly communicated Ukraine’s readiness for peace talks to Trump. The two leaders made clear that Russia’s demand for Ukraine to surrender the Donbas region, the eastern territory that has been at the center of the conflict since 2014, is a non-starter.

Trump described his meeting with Zelensky as “very good” and called for Russia to negotiate a deal.

Zelensky also met with European leaders in London ahead of the G7 to discuss the framework for direct dialogue with Russia, supported by both the US and European allies.

Months of negotiations behind the scenes

The diplomatic groundwork stretches back months, with meetings held in Berlin in December 2025 that brought together Zelensky, Merz, and US envoy Steve Witkoff.

Those December talks reportedly explored some creative proposals, including a potential demilitarized zone or free economic zone in parts of Donbas. Ukraine resisted the idea.

Since Trump’s return to the presidency, there have been US-brokered discussions in both Berlin and Miami, with European leaders including French President Macron and UK Prime Minister Starmer playing supporting roles.

What this means for crypto markets

No specific correlation has been identified between these latest diplomatic developments and cryptocurrency market movements. Previous ceasefire announcements related to the Ukraine conflict have produced temporary effects on digital assets like Bitcoin, but the operative word is temporary.