Headlines
Ukraine international bonds tumble after Trump-Zelenskiy clash
Published by Global Banking and Finance Review
Posted on March 3, 2025
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on March 3, 2025
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)