Published by Global Banking & Finance Review®
Posted on March 3, 2025
2 min readLast updated: January 25, 2026
Add as preferred source on GoogleUkraine's bonds fell after a Trump-Zelenskiy clash, with geopolitical tensions impacting the debt market. A potential U.S. minerals deal remains uncertain.
By Karin Strohecker
LONDON (Reuters) - Ukraine's international bonds suffered sharp falls on Monday following a clash between Ukrainian President Volodymyr Zelenskiy and U.S. President Donald Trump late on Friday.
The 2035 maturity saw the biggest decline, down 3.632 cents to be bid at 61.688 cents in the dollar, its lowest in a month, Tradeweb data showed.
Ukraine's GDP warrant - which pays out more if the economy grows strongly - also came under pressure, dropping more than 2 cents to trade at just over 80 cents.
Ukraine debt has been on a rollercoaster in recent weeks, driven by geopolitics and uncertainty over how much support a Trump administration is prepared to extend to the war-torn nation.
Rising tensions in mid-February, which saw Trump labelling Zelenskiy a "dictator" and rekindling relations with Russia, sent the bonds sharply lower. But most maturities clawed back much of their losses last week amid hopes that Zelenskiy and Trump could strike a much-vaunted minerals deal that Kyiv hoped would prompt the U.S. president to back Ukraine's war effort.
However, that optimism unravelled after Friday when Zelenskiy cut short a visit initially aimed at signing the minerals deal following an explosive meeting that ended in a shouting match in the Oval Office.
"For Europe including Ukraine, the geopolitical news of the last four weeks could hardly have been worse," said Berenberg's Holger Schmieding.
On Sunday, Zelenskiy met with European leaders in London, who agreed to draw up a Ukraine peace plan to present to Washington - a vital step for the United States to be able to offer security guarantees that Kyiv says are essential to deter Russia.
Zelenskiy said on Sunday he believed he could salvage his relationship with Trump and was still willing to sign a minerals deal with Washington.
"There was a lot of solidarity for Ukraine after the meeting but a lot still hinges on the U.S.'s involvement," said Deutsche Bank's Jim Reid in a note to clients.
(Reporting by Karin Strohecker; Editing by Amanda Cooper and Ros Russell)
The article discusses the decline of Ukraine's international bonds following a clash between Presidents Trump and Zelenskiy.
The bonds fell due to geopolitical tensions and uncertainty over U.S. support following a dispute between Trump and Zelenskiy.
The minerals deal is significant as it could influence U.S. support for Ukraine, impacting geopolitical relations and Ukraine's economy.
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