Trump and Putin Begin Peace Talks as Ukraine Faces Territorial Compromise

In a significant diplomatic development, former US President Donald Trump and Russian President Vladimir Putin have initiated discussions aimed at ending the three-year conflict in Ukraine, raising concerns about potential territorial concessions.

The 90-minute telephone conversation between the two leaders marked their first confirmed contact since Trump’s return to the White House. Trump subsequently communicated with Ukrainian President Zelensky, indicating Kyiv’s apparent willingness to negotiate.

The US negotiating team, led by Secretary of State Marco Rubio, includes CIA Director John Ratcliffe, National Security Adviser Michael Waltz, and Special Middle East Envoy Steve Witkoff. The Kremlin has extended an invitation for Trump to visit Moscow, with initial meetings planned in Saudi Arabia.

Market analysts are closely monitoring these developments, as any resolution could significantly impact defence sector stocks and Eastern European investments. The US has invested over $180 billion in supporting Kyiv, with Trump now seeking to recoup these funds through access to Ukraine’s valuable rare earth mineral deposits.

European allies have expressed apprehension about being excluded from the negotiations. The new US Defence Secretary, Pete Hegseth, has already indicated that Ukraine’s pre-2014 borders are “an unrealistic objective,” suggesting substantial territorial compromises may be necessary.

The financial implications of these talks extend beyond immediate military spending. Any peace agreement could reshape Eastern European economic relationships and trigger significant shifts in defence industry investments, particularly affecting companies heavily invested in military equipment production.