A push by French President Macron and Italian PM Meloni to begin discussions with the Russian Kremlin is gaining traction in EU capitals and in Brussels itself, Politico reports citing sources. Primary goal to ensure EU red lines are not crossed

• and to signal to the US that the EU has leverage.
• Elsewhere, creation of the role of EU special envoy to Ukraine hs support of the Council and leaders. Mario Draghi and Alexander Stubb have been touted. However, EU diplomat Kallas opposes the role.

The push by Macron and Meloni for dialogue with Russia indicates a potential shift in EU strategy towards diplomacy, which might alleviate some market tensions around geopolitics and energy. If successful, this could signal to the US that the EU is asserting its influence, which may have implications for forex and commodity markets, particularly with respect to how the USD and EUR are perceived relative to geopolitical risk.