The dispute between the United States and Europe sparked by Donald Trump’s ambitions regarding Greenland has halted the launch of an $800 billion economic plan for post-war Ukraine.
According to the Financial Times and Politico, transatlantic tensions have disrupted the agenda of the World Economic Forum in Davos and risk weakening Western unity in support of Kiev, amidst its ongoing conflict with Russia.
The plan, estimated at around $800 billion and named the "prosperity plan," was set to be officially presented this week.
Six officials cited by FT stated, however, that the announcement has been postponed due to deep disagreements between Europeans and Washington, stemming from Trump's stance on Greenland and the proposal for him to lead a global conflict mediation body.
"There will be no signing, for now," one official told the Financial Times. Another emphasized that European states cannot ignore the actions of the US President regarding Greenland while trying to progress on other sensitive issues, such as Ukraine.
A third official explained that "no one is willing at this moment to stage a big show around an agreement with Trump," adding that the Greenland scandal and the controversy surrounding the Peace Council have "overshadowed" the initial focus on Ukraine at the Alpine meeting.
Trump threatened to impose tariffs on eight European NATO allies in response to their decision to send troops to Greenland for a military exercise.
European officials describe the situation as the most serious transatlantic crisis in recent decades.
Meanwhile, the invitation extended to European leaders to participate in the Peace Council has raised concerns that the new body could marginalize the UN in managing global conflicts.
Most EU states have declined the invitation, and the decision to invite Russian President Vladimir Putin has amplified fears, according to sources cited by FT.
French President Emmanuel Macron announced that he will not participate, while the German government stated that a "prerequisite" is for the body to be "compatible with existing international legal frameworks."
Ukrainian President Volodymyr Zelensky told journalists that he finds it very difficult to imagine participating in a forum alongside Putin. "I am concerned about any loss of focus during a large-scale war," he added, emphasizing that he does not see Greenland and Ukraine as interchangeable topics.
Politico: Greenland dominates Davos, Ukraine risks being forgotten
In a separate analysis, Politico shows that European leaders gathered at Davos are increasingly absorbed by the crisis sparked by Trump's ambitions over Greenland, while the actual war at Europe's eastern border is pushed into the background.
"There is a real war with the Russians in Ukraine," said Norwegian Foreign Minister Espen Barth Eide to Politico. "Greenland is consuming the energy that should be allocated to discussions on what we should do. It would be a good idea to focus on the real war that is ongoing, where there are actually Russians that need to be fought."
According to Politico, Ukrainian officials fear that as Europeans try to manage the Greenland crisis triggered by Trump, support for Kiev could be diluted. "We need American and European unity," said a prominent Ukrainian business leader present at Davos. "We need America and Europe to be together, not against each other."
The context is even more sensitive as Russia has intensified attacks on Ukraine's energy infrastructure in an exceptionally harsh winter. "This winter is different from the three previous ones during the war for several reasons," explained Maxim Timchenko, CEO of the Ukrainian energy company DTEK. "With power plants and stations constantly hit, it becomes increasingly difficult to repair them. They are pulling out all the stops to destroy the energy infrastructure - ballistic missiles, cruise missiles, and all kinds of drones."
Politico notes that Trump's increasingly bellicose language, including refusing to rule out the use of force to take over Greenland, has fueled European leaders' concerns ahead of his speech at Davos. "I really hope we can soon return to discussions on how to end the [Ukrainian] war," said Finland's Foreign Minister Elina Valtonen.
Although officials cited by the Financial Times claim that the prosperity plan for Ukraine has not been definitively abandoned, but only postponed, the situation at Davos illustrates how quickly Western priorities can be diverted at a critical moment for Kiev.