Despite French efforts, shift in Putin’s tone, fears of Russia-Ukraine war are far from over

Geopolitical tensions between Russia and Ukraine remain fierce even as markets recently witnessed some positives, by a shift in the tone of Russian President Vladimir Putin. Adding to the market fears were comments from UK Prime Minister (PM) Boris Johnson.

During the telephonic talks with French counterpart Emmanuel Macron, Russia’s Putin said, “I hope that the situation in Ukraine can be handled amicably in the future.”

The Russia Boss also mentioned that Russia will do all it can to find middle grounds that suit everyone.

It should be noted, however, that Putin doesn’t step back from warning as he said, “If Ukraine joins NATO, Europe would be pulled into a military clash with Russia, there will be no winners.”

On the other hand, French President Macron mentioned that they can create concrete security guarantees for EU members and Russia's neighbors. “Putin has agreed to review concrete de-escalation initiatives,” added the French leader.

Elsewhere, UK PM Johnson sounds harsh in his latest comments over the issues, shared by The Times. “British sanctions and other measures will be prepared in the event of a new Russian attack on Ukraine.”

Additional comments from UK PM Johnson mentioned, “We are thinking about sending RAF typhoon fighters and royal navy warships to protect Southeastern Europe.”

Further, “The UK is preparing to reinforce the NATO battle group led by Britain in Estonia.”

“Welcome Germany's statement that, in the event of an incursion, NORD Stream 2 would be reconsidered,” adds UK’s Johnson per The Times.

FX implications

Given the risk of a war between Russia and Ukraine, oil prices remain firmer above $90.00, despite the weak-start pullback.