BRUSSELS: US Defense Secretary Pete Hegseth said Wednesday that NATO membership for Ukraine was unrealistic and suggested Kyiv should abandon hopes of winning all its territory back from Russia and instead prepare for a negotiated peace settlement to be backed up by international troops.
Hours later, President Donald Trump said he and Russian President Vladimir Putin had agreed to begin negotiations on ending the Ukraine war. In a social media post that upended three years of US policy toward Ukraine, the Republican disclosed a call between the two leaders and said they would “work together, very closely.” Ukrainian President Volodymyr Zelensky’s office said Zelensky and Trump also had a phone conversation.
Taken together, the statements by Trump and Hegseth offered the clearest look yet at how the new administration might try to end Europe’s largest land war in generations.
Hegseth’s warning to Ukraine that it should abandon its NATO bid and its push to reclaim all Russian-occupied territory signaled starkly to Kyiv that the administration’s view of a potential settlement is remarkably close to Moscow’s vision. Putin has declared that any peace deal must ensure that Ukraine gives up its NATO ambitions and withdraws its troops from the four regions that Russia annexed in September 2022 but never fully captured.
In sweeping remarks to allies eager to hear how much continued support Washington intends to provide to the Ukrainian government, Hegseth indicated that Trump is determined to get Europe to assume most of the financial and military responsibilities for the defense of Ukraine, including a possible peacekeeping force that would not include US troops.
Making the first trip to NATO by a member of the new Trump administration, the defense secretary also said the force should not have Article 5 protections, which could require the US or the 31 other nations of the NATO alliance to come to the aid of those forces if they are attacked by Russian forces.
The secretary’s comments were sure to dim Ukraine’s hopes of making itself whole again and to complicate talks later this week between Zelensky and US Vice President JD Vance and other senior American officials at a major security security conference in Munich.
“The United States does not believe that NATO membership for Ukraine is a realistic outcome of a negotiated settlement,” Hegseth said, as Kyiv’s backers gathered at NATO headquarters for a meeting to drum up more arms and ammunition for the war, which will soon enter its fourth year.
All 32 allies must agree for a country to join NATO, meaning that every member has a veto.
“Instead, any security guarantee must be backed by capable European and non-European troops,” Hegseth said. “To be clear, as part of any security guarantee, there will not be US troops deployed to Ukraine.”
Other Western allies said the possibility of Ukraine joining NATO needs to stay on the table.
French Foreign Minister Jean-Noël Barrot said NATO “is still the main guarantee of security for European countries.”
Asked about Trump’s phone call with Putin, Barrot said that abandoning Ukraine would “entrench the law of the strongest. It would be an invitation to all the world’s tyrants and despots to invade their neighbors with complete impunity.”
Hegseth insisted that NATO should play no role in any future military mission to police the peace in Ukraine and that any peacekeeping troops should not be covered by the part of NATO’s founding treaty that obliges all allies to come to the aid of any member under attack.
Article 5 has been activated only once, when European allies and Canada used it to help the United States in the wake of the Sept. 11, 2001, Al-Qaeda attacks on New York and Washington.
Hegseth also said Europe “must provide the overwhelming share of future lethal and nonlethal aid to Ukraine.” Ukraine currently relies equally on Europe and the US for about 30 percent each of its defense needs. The rest is produced by Ukraine itself.
Speaking with the allies of Ukraine known as the Ukraine Defense Contact Group, Hegseth also insisted that Ukraine’s Western backers must abandon the “illusionary goal” of returning the country to its pre-2014 borders, before Russia annexed the Crimean Peninsula and seized parts of eastern Ukraine.
“Members of this contact group must meet the moment,” Hegseth said to the approximately 50 member countries that have provided support to Ukraine since Russia’s full-scale invasion in 2022.
In his social media post, Trump said he and Putin “talked about the strengths of our respective Nations, and the great benefit that we will someday have in working together. But first, as we both agreed, we want to stop the millions of deaths taking place” in the war.
Trump said the two leaders “agreed to have our respective teams start negotiations immediately.”
Zelensky said he had a “meaningful conversation” with Trump about “opportunities to achieve peace.” He said Trump shared details of his conversation with Putin.
“No one wants peace more than Ukraine,” Zelensky posted on X. “Together with the US, we are charting our next steps to stop Russian aggression and ensure a lasting, reliable peace. As President Trump said, let’s get it done. We agreed to maintain further contact and plan upcoming meetings.”
Talking to reporters after the NATO meeting, UK Defense Secretary John Healey said Hegseth’s words would not go unheeded.
“We heard his call for European nations to step up. We are, and we will,” Healey said.
Healey underlined that “Ukraine’s rightful place is in NATO. That is a process that will take some time.”
He also announced that Britain would provide Ukraine with a fresh $187 million “firepower package,” including drones, tanks and air-defense systems.
Over nearly three years, those 50 countries have collectively provided Ukraine with more than $126 billion in weapons and military assistance, including more than $66.5 billion from the US, which has served as the chair of the group since its creation.
Hegseth’s trip comes less than two weeks before the third anniversary of Russia’s invasion on Feb. 24, 2022. Most US allies fear that Putin won’t stop at Ukraine’s borders if he wins.
Trump has promised to end the war quickly. He’s complained that it’s costing American taxpayers too much money and suggested that Ukraine should pay for US support with access to its rare earth minerals, energy and other resources.
On Wednesday, US Treasury Secretary Scott Bessent was in Kyiv to discuss a potential economic cooperation agreement with Ukraine that Trump is pushing as part of the foundation for a larger peace deal.
US defense chief suggests Ukraine should abandon hope of winning all territory back from Russia
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US defense chief suggests Ukraine should abandon hope of winning all territory back from Russia
- The statements by Trump and Hegseth offered the clearest look yet at how the new administration might try to end Europe’s largest land war in generations
Britain needs ‘AI stress tests’ for financial services, lawmakers say
- Lawmakers urge AI-specific stress tests for financial firms
LONDON: Britain’s financial watchdogs are not doing enough to stop artificial intelligence from harming consumers or destabilising markets, a cross-party group of lawmakers said on Tuesday, urging regulators to move away from what it called a “wait and see” approach.
In a report on AI in financial services, the Treasury Committee said the Financial Conduct Authority and the Bank of England should start running AI-specific stress tests to help firms prepare for market shocks triggered by automated systems.
The committee also called on the FCA to publish detailed guidance by the end of 2026 on how consumer protection rules apply to AI, and on the extent to which senior managers should be expected to understand the systems they oversee.
“Based on the evidence I’ve seen, I do not feel confident that our financial system is prepared if there was a major AI-related incident and that is worrying,” committee chair Meg Hillier said in a statement.
TECHNOLOGY CARRIES ‘SIGNIFICANT RISKS’
A race among banks to adopt agentic AI, which unlike generative AI can make decisions and take autonomous action, runs new risks for retail customers, the FCA told Reuters late last year.
About three-quarters of UK financial firms now use AI. Companies are deploying the technology across core functions, from processing insurance claims to performing credit assessments.
While the report acknowledged the benefits of AI, it warned the technology also carried “significant risks” including opaque credit decisions, the potential exclusion of vulnerable consumers through algorithmic tailoring, fraud, and the spread of unregulated financial advice through AI chatbots.
Experts contributing to the report also highlighted threats to financial stability, pointing to the reliance on a small group of US tech giants for AI and cloud services. Some also noted that AI-driven trading systems may amplify herding behavior in markets, risking a financial crisis in a worst-case scenario.
An FCA spokesperson said the regulator welcomed the focus on AI and would review the report. The regulator has previously indicated it does not favor AI-specific rules due to the pace of technological change.
The BoE did not respond to a request for comment.
Hillier told Reuters that increasingly sophisticated forms of generative AI were influencing financial decisions. “If something has gone wrong in the system, that could have a very big impact on the consumer,” she said.
Separately, Britain’s finance ministry appointed Starling Bank CIO Harriet Rees and Lloyds Banking Group ‘s Rohit Dhawan as “AI Champions” to help steer AI adoption in financial services.










