The Ukrainian people would reject a peace deal that involves Ukraine unilaterally withdrawing from the eastern Donbas region and turning it over to Russia, Ukrainian President Zelensky told Axios

• As Zelensky was speaking to Axios, Ukrainian and Russian negotiators were meeting for a third round of direct talks in Geneva. The main sticking point is control of the Donbas, around 10% of which is still in Ukrainian hands.
• Zelensky said US mediators Witkoff and Kushner have told him Russia genuinely wants to end the war, and that he should coordinate with his own negotiating team on that basis ahead of the talks.
• But Zelensky made clear he's much more pessimistic. He also advised Witkoff and Kushner that they shouldn't try to force him to sell a vision of peace his own people would see as an "unsuccessful story."
• In his 37-minute phone interview with Axios, Zelensky noted that Washington and Kyiv have agreed that any deal must be put to the Ukrainian people in a referendum.
• Trilateral talks in Geneva are expected to continue on Wednesday.
• Zelensky reiterated that the best way to find a breakthrough on territory is for Putin to meet him face-to-face.

Ukrainian President Zelensky's declaration underscores the firm stance against any peace deal that would require Ukraine to relinquish control of the Donbas region to Russia. This sentiment reflects potential instability and ongoing conflict, which could have implications for market sentiment and drive safe-haven demand for assets like gold and the USD, along with volatility in related commodities such as oil and natural gas as tensions persist.