Ukrainian President Volodymyr Zelenskiy stated that sanctions against Russia should not be lifted as a means of securing Moscow's cooperation, arguing that the measures were imposed in response to aggression rather than as leverage for negotiations and should only be removed as part of a broader settlement ending the war. The transmission channel for markets runs through geopolitical risk premia and sanctions-relief expectations, since any perceived softening of Western restrictions can compress risk premia on Russian sovereign and corporate exposure while lifting sentiment toward energy, commodities and European assets tied to Russian supply routes. Russian instruments and any holders of Russia-linked debt or equities remain most sensitive to shifts in sanctions expectations, while European energy names and commodity markets are exposed through the supply and pricing implications of sanctions policy. Traders will watch for any formal diplomatic developments or peace-framework proposals that specify sanctions sequencing, as well as EU sanctions renewal decisions and the next round of US Treasury designations, which would signal whether the current restrictive stance is holding.
ZELENSKIY SAYS THERE IS NO NEED TO BUY RUSSIA’S LOYALTY BY LIFTING SANCTIONS, WHICH WERE IMPOSED BECAUSE OF AGGRESSION, NOT BECAUSE OF A WILLINGNESS TO NEGOTIATE, AND CAN ONLY BE LIFTED AS PART OF ENDING THE WAR
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