Kremlin proposes terms to end war, oil down ~$8 from overnight high
Mar. 07, 2022 10:15 AM ETSPY, USOBy: SA News Team1.25K Comments
A Kremlin spokesman said Monday that Russia will halt Ukrainian operations "in a moment" if Kyiv meets a list of conditions, according to Reuters. The news has lifted equity futures (NYSEARCA:SPY) and mitigated the oil price rally (NYSEARCA:USO) overnight:
- Ukraine cease military action.
- Ukraine change its constitution to enshrine neutrality (eliminate possibility of NATO, EU membership).
- Recognize separatist republics of Donetsk and Lugansk.
- Acknowledge Crimea as Russian territory.
The UN recently adopted a resolution demanding Russia immediately withdraw to its internationally recognized borders. Russia showed no intention of withdrawing as the Kremlin detailed its list of demands. However, if Monday's statements prove true, a point many are sure to debate, it could indicate a narrowing of scope in negotiations. Markets have responded favorably, as the list of demands provide some framework for a political resolution.