US and Russia seek Ukraine peace deal, oil prices dip

Published 08/08/2025, 15:20
© Reuters

Investing.com -- The United States and Russia are working toward an agreement to end the war in Ukraine that would allow Russia to maintain control of territories it has occupied during its military invasion, according to a Bloomberg report citing anonymous sources familiar with the matter.

U.S. and Russian officials are preparing for a potential summit between Presidents Donald Trump and Vladimir Putin that could take place as early as next week. The officials are currently negotiating territorial arrangements ahead of this meeting, according to the sources who requested anonymity due to the sensitive nature of the discussions.

The U.S. is reportedly seeking support from Ukraine and European allies for the potential deal, though agreement is not guaranteed.

According to the sources, Russian President Putin is insisting that Ukraine surrender the entire eastern Donbas region as well as Crimea, which Russian forces annexed in 2014. This would require Ukrainian President Volodymyr Zelenskiy to order Ukrainian troops to withdraw from parts of the Luhansk and Donetsk regions that remain under Kyiv’s control.

Such a concession would grant Russia territorial gains that its military has been unable to secure through combat operations since launching its full-scale invasion in February 2022.

News of the potential peace negotiations caused oil prices to decline on Friday.

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