Breaking: In a nod to Russia, Ukraine is reportedly no longer insisting on NATO membership - AFP


In a nod to Russia, Ukraine is reportedly no longer insisting on NATO membership, reported AFP on Tuesday. France24 also subsequently reported a similar headline, though was referring to an interview conducted on Monday. Ukraine's aspirations to join NATO was a key reason why Russian President Vladimir Putin ordered an invasion of the country. Whether or not an offer not to join NATO meets Russia's conditions that Ukraine be "neutral" (after all, Ukraine still aspires to join the EU) is not yet clear. 

To clarify, Russia's stated goals when it announced its "special military operation" (invasion) of Ukraine was to "demilitarise" and de-Nazify" the country. Russia's demands for Ukraine to meet if it wants a ceasefire to include a pledge to be "neutral". Given the damage already dealt to the Russian military as a result of the conflict and to the Russian economy by Western sanctions, strategists have argued that the incentive for the Russians to agree to a ceasefire is diminished.

A pledge not to join NATO might not be enough. Russia may want to see a puppet pro-Kremlin government installed and aspirations to join the EU dropped, as well as agreements to "demilitarisation" conditions fulfilled before agreeing to a ceasefire. Ukrainian President Volodymyr Zelensky has made it clear that such conditions are not acceptable.

Market Reaction

The latest headlines of Ukraine dropping demands to join NATO triggered a bout of risk-on as traders revise higher their expectations that there could be a ceasefire. Commodity prices like gold and oil pulled back a little while US equities and yields popped higher. In FX markets, the US dollar and other havens have been sustaining some losses. 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD remains under pressure above 0.6400

AUD/USD remains under pressure above 0.6400

AUD/USD managed to regain some composure and rebounded markedly from Tuesday’s YTD lows in the sub-0.6400 region ahead of the release of the Australian labour market report on Thursday.

AUD/USD News

EUR/USD holds above 1.0650 amid renewed selling pressure in US Dollar

EUR/USD holds above 1.0650 amid renewed selling pressure in US Dollar

The EUR/USD pair edges higher to 1.0672 on Thursday during the early Asian session. The recovery of that major pair is bolstered by renewed selling pressure in the US Dollar and a risk-friendly environment.

EUR/USD News

Gold retreats as lower US yields offset the impact of hawkish Powell speech

Gold retreats as lower US yields offset the impact of hawkish Powell speech

Gold prices retreated from close to weekly highs during the North American session on Wednesday amid an improvement in risk appetite. The bullish impulse arrived despite hawkish commentary by US Federal Reserve officials. 

Gold News

Bitcoin price uptrend to continue post-halving, Bernstein report says as traders remain in disarray

Bitcoin price uptrend to continue post-halving, Bernstein report says as traders remain in disarray

Bitcoin price is dropping amid elevated risk levels in the market. It comes as traders count hours to the much-anticipated halving event. Amid the market lull, experts say we may not see a rally until after the halving. 

Read more

Australia unemployment rate expected to rise back to 3.9% in March as February boost fades

Australia unemployment rate expected to rise back to 3.9% in March as February boost fades

Australia will publish its monthly employment report first thing Thursday. The Australian Bureau of Statistics is expected to announce the country added measly 7.2K new positions in March after the outstanding 116.5K jobs created in February.

Read more

Forex MAJORS

Cryptocurrencies

Signatures