Ukraine says the US offered to finalise security guarantees if Ukraine withdraws from Donbas, says withdrawal from Donbas would be high risk for Ukraine and for Europe, according to reports

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Ukraine says the US offered to finalise security guarantees if Ukraine withdraws from Donbas, says withdrawal from Donbas would be high risk for Ukraine and for Europe, according to reports

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  • Ukraine has enough domestic long-range capabilities to retaliate against Russian attacks

Context

The reports suggest a potential escalation in geopolitical tensions, as Ukraine's reluctance to withdraw from Donbas highlights the complexities of security guarantees from the US. Such developments could provoke market volatility, particularly in energy and commodity sectors, as fears of prolonged conflict may further disrupt supply chains and support safe-haven assets like gold. Additionally, the ongoing US military support for Ukraine indicates a commitment to countering Russian influence, which could impact broader market sentiment across currencies and risk assets.

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