Fixed Income

July 15, 2019

Quotes for Ukrainian sovereign Eurobonds corrected rather sharply last week, a move which we view as technical rather than fundamental, as the positive news of a quasi-sovereign placement of near USD 1bn by state-owned energy monopoly Naftogaz arrived too late to affect the market. Meanwhile in political developments, President Volodymir Zelenskiy had his first phone call with Russian counterpart Vladimir Putin centered on the conflict in eastern Ukraine that has bitterly blighted relations between the two countries. Earlier Zelenskiy suggested that he and Putin could meet in Minsk to discuss the conflict in Ukraine’s east and Russia’s 2014 annexation of Crimea. He added that he would like the leaders of the US, Britain, France and Germany to join the talks.