Ukraine Negotiator: Ukraine suggested a new security guarantee system, see Turkey as potential guarantor

With Tuesday's Russo-Ukrainian peace talks on Tuesday having now wrapped up, comments from one of Ukraine's negotiators are now crossing the wires. Ukraine suggested a new security guarantee system at Tuesday's talks, the Ukrainian negotiator said according to Reuters. Ukraine sees Turkey as one of the main potential security guarantors, the negotiator added, saying that Israel, Poland, Canada and Turkey could be among Ukraine's security guarantors under the new system.

If the security guarantee system works out, then Ukraine will agree to neutral status, the negotiator said, which would include the pledge not to host foreign military bases. However, first of all, a referendum in Ukraine would be needed on the terms of agreement with Russia and there needs to be full peace across Ukrainian territory for any final agreement with Russia to come into force. Ukraine also proposed holding consultation with Russia on the status of Crimea over the next 15 years, the negotiator added. 

Market Reaction

There has not been much of a market reaction to the latest headlines regarding peace talks, given they did not really allude to any progress/lack thereof in talks. Market participants now await word from the Russian side.