At the beginning of December, U.S.–Russia negotiations in Moscow made minimal progress, with President Vladimir Putin reiterating territorial demands over the Donbas, while Ukraine firmly rejected any concessions. In the latter part of the month, diplomatic efforts focused on aligning U.S. and European visions regarding the potential content of a peace agreement, particularly with respect to security guarantees for Ukraine. Negotiations intensified at the end of December around a revised 20-point Ukrainian peace plan, which emphasized an immediate ceasefire, robust security guarantees in the event of a renewed Russian attack, and postwar reconstruction. By month’s end, Ukraine and the U.S. described the plan as nearly final, although key issues—especially control of the Donbas—remained unresolved. President Putin reaffirmed Russia’s maximalist position in the war in Ukraine and has not abandoned territorial claims. At the end of the month, in an apparent attempt to disrupt negotiations, Russia claimed that Ukraine had launched a massive drone attack on Putin’s Valdai residence—a claim Ukraine denied and which U.S. intelligence agencies deemed unsubstantiated.
Ukraine demonstrated the capability to strike deep into Russia’s military, energy, and logistics infrastructure, while Russia intensified frontline pressure and carried out systematic attacks on Ukraine’s civilian and energy infrastructure. Western support for Ukraine became more institutionalized and long-term, combining expanded military assistance—focused on air defense, advanced weapons procurement, and joint industrial production—with coordinated financial packages aimed at stabilizing Ukraine’s economy and energy system.
Russia faced increasing economic pressure from sanctions and declining energy revenues. The Central Bank lifted certain foreign currency transfer limits ahead of schedule and slightly reduced interest rates, while GDP growth slowed to approximately 1% and inflation remained above target.
The Republic of Moldova continued its diplomatic efforts through discussions with NATO and U.S. officials, while strengthening energy resilience by securing electricity imports from Romania and preparing the Vulcănești–Chișinău high-voltage transmission line for commissioning. Domestically, the government took measures to protect economic sovereignty, including blocking Lukoil-Moldova investments, while pro-Kremlin oligarch Ilan Shor announced the withdrawal of his “social projects” in Moldova, signaling a possible shift in Russian influence.
In the Balkans, the EU–Western Balkans Summit reaffirmed the region’s EU accession perspective, emphasizing the need for security and resilience against hybrid threats. Kosovo held extraordinary parliamentary elections, with Prime Minister Albin Kurti’s Vetëvendosje party winning the majority needed to form a stable government. Bulgaria’s government resigned following widespread protests and a parliamentary no-confidence vote over corruption and economic mismanagement. Montenegro continued progress toward EU accession, closing five additional negotiating chapters. In Romania, nationwide protests called for stronger judicial independence and firmer anti-corruption measures, while the government strengthened defense capabilities through strategic industrial investments and support for Ukraine via a €50 million contribution to the U.S.-led Priority Ukraine Requirements List (PURL).