US Envoy: Peace Deal in Ukraine Imminent, Negotiations Progressing Rapidly

Keith Kellogg, the U.S. special envoy to Ukraine, says a peace deal to end the war is "very close." Speaking at the Reagan National Defense Forum, he described the current negotiations as being in the "final 10 meters" - the hardest part of any diplomatic process.

The main sticking points come down to territory, according to Kellogg. He believes if negotiators can solve these two land-related issues, everything else will fall into place. "We're really close," he said, suggesting the talks have reached a critical stage.

This comes as Ukrainian President Volodymyr Zelensky held what he called a "substantial" phone call with Trump's special envoy Steve Witkoff and Trump's son-in-law Jared Kushner on Saturday. The timing suggests the incoming Trump administration is actively working on diplomatic solutions before taking office.

For markets, any concrete progress toward ending the conflict could affect energy prices, defense spending, and reconstruction investments. European markets have been particularly sensitive to developments in the war, given the continent's proximity and economic ties to both Ukraine and Russia.

The territorial disputes likely center on Russian-occupied areas of Ukraine, including Crimea and parts of eastern Ukraine that Russia claims to have annexed. How these regions are handled in any final agreement will determine whether a deal can actually stick long-term.