Ukraine bonds decline as tensions between Trump, Europe escalate
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Eastern European assets, which had surged this year on hopes of a quick settlement to the Ukraine war, performed unevenly, with currencies gaining on Monday.
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Former President Donald Trump meets with Ukrainian President Volodymyr Zelensky at the Trump Tower, on September 24, 2017, in New York. (AP)
Ukraine's dollar bonds fell the most since last year's restructuring, as disagreements between the United States and Europe over the peace process unnerved investors who had expected an orderly transition to a ceasefire.
Bloomberg reported that Eastern European assets, which had surged this year on hopes of a quick settlement to the Ukraine war, performed unevenly, with currencies gaining on Monday.
Ukraine's dollar notes due in 2035, which have no coupon, plummeted more than 3 cents to about 63 cents per dollar, making them the worst-performing foreign-issued bonds in developing markets today.
Investors are appraising the remaining possibilities for peace following President Volodymyr Zelensky's shouting match with Donald Trump at the White House, as well as a European leaders' conference intended to keep the US involved.
Kiev does not want peace and is not looking for negotiation: Kremlin
Ukrainian President Volodymyr Zelensky's statements at the White House have shown that Kiev does not want peace and is not ready for negotiations, Kremlin spokesperson Dmitry Peskov said on Monday.
Zelensky's visit, marred by insults and blame games, ended abruptly—leaving him without a minerals deal or any assurances of US military or financial support.
"In this situation, of course, only Washington's efforts and Moscow's readiness will obviously not be enough."
Peskov emphasized during a news briefing that the situation with the Ukrainian conflict is "not easy", noting that any constructive initiatives are needed today to resolve the conflict, while adding that there are "some first outlines of such eventual peace plans. Although there is no reason to say that there is any coherent, detailed peace plan on the agenda yet."
Peskov also said the United States' shift in foreign policy aligns with Moscow's visions, in an interview aired on March 2, where he pointed out that Trump's administration "is rapidly changing all foreign policy configurations. This largely coincides with our vision."
"There is a long way to go, because there is huge damage to the whole complex of bilateral relations. But if the political will of the two leaders, President Putin and President Trump, is maintained, this path can be quite quick and successful," Peskov added, as the United States focused on mending the diplomatic and economic relations between Moscow and Washington.
The two countries have sent high-level delegations to discuss the bilateral relations between them, as the Trump administration continues to push for better relations with Moscow, initiated by a phone call between the US president and his Russian counterpart announced on February 12.
