Trump-Putin talks are already a triumph for Moscow, its economy and markets

Negotiations between Russian President Vladimir Putin and American counterpart Donald Trump remain for a few days, but the upcoming meeting of two leaders to agree to end the war in Ukraine, already regarded as a victory for the Kremlin, the economy of Russia and the world financial markets.

Discussions must be held on Friday in Alaska.

“This is a great victory for Putin, which will be invited for the first time since 2007 to meet with the US President on American Gleb. From his point of view, it is a great achievement, without the conditions and the absence of Ukraine, the absence of any European representation said.

There is a concern that Ukraine may be forced to yield to the Russian territory, and the mood in Kiev has dropped whose officials, including President Vladimir Zelenko, still do not invite.

Kyiv stated that his future would not be conditioned, and European leaders are strongly pushing for Ukraine. The US, according to its part, stated that the Zelenskyy invitation, NBC News is reported.

At the same time, economists say that negotiations are happening when Russia makes a profit on the battlefield in the south and eastern Ukraine, without stopping the fire-already win for Putin and its economy focused 9.4% in June.

“(Putin) begins with a relatively strong position on the battlefield. They are moving … On the other hand, it starts from the economic point of view. The Russian economy is not in very good form. CNBC “Europe”.

Russia will probably want from the immediate weakening of sanctions under any ceasefire agreement as well as Ukrainian territorial concessions.

The Kremlin looked at the rapprochement with Washington as an opportunity not only to restore the economy but also in investment. Assistant to the President of Russia Yuri Ushakov said on Saturday that “the economic interests of our countries intersect in Alaska and Arctic, and there are prospects for the implementation of large -scale and mutually profitable projects,” “” ” said the Kremlin.

Portes said that if Trump “There was patience and readiness to apply sanctions correctly, then the expectation (to negotiate) would lead to a very significant change in the balance of power.”

However, as it stands, Trump was pondering, but still distracted from increasing sanctions to Russia. Instead, Washington threatened the rest of the Kremlin trading partners such as India, “secondary sanctions” and additional trade tariffs for continuing Russian oil purchasing Moscow’s military car.

Asked if Trump could come forward with more punitive sanctions to push Putin to a peaceful deal, Portes asked, “Who can predict what the US president will do from one day to next? It is very difficult.”

“The likelihood of increasing the pressure of sanctions is important, but … Given Trump’s desire to the Nobel Prize, the likelihood that Trump will increase sanctions at this stage. It doesn’t look very high, but it may change your mind tomorrow,” he said.

Global financial markets responded positively to the announcement on Friday, in which negotiations on the end of the war will take place quickly, with bubbles in Europe and the US that rise. However, the defense actions in Europe fell on the news as the traders seemed to argue that peace could restrain further investments laid down by NATO allies.

The cost of gold, which is seen as a safe shelter during the geopolitical and financial market, decreased by 1% at $ 3364 per ounce, as of 8a.m. London’s time on Monday.

A shares of Germany Reinmetall traded below nearly 4% Hansoldt decreased by 1.5% and Color 3.3% fell in early bidding. Italy Leonard and France Chunk Also decreased by 1.9% and 1.7% respectively. Meanwhile the London List Bae Systems and Grandmother He also refused the profit from the beginning of the day, falling by 1.1% and 1.3% respectively at about 9am in London.

But Christopher Granville, the head of the TS Lombard director, said the negotiations could eventually be “win -win for European defense shares” and advised investors “buying this weakness”.

Granville said that if the peace process fails, it will still be necessary to replenish the exhausted US and Europe weapons reserves that “would be very useful for orders and procurement for Rheinmetall and all other European defense shares.”

“Or, if there is a peaceful agreement, what do we see? We see very powerful Russian troops, who – although the words” victory “and” defeat “will be overloaded and probably should not be used – to some extent prevail. This reality will continue to increase the defense of European governments, and it is also good for European defense.”

“The market certainly reduces this from time to time, and since those (stocks) names are a little back, you have to buy this weakness in my opinion.”