Oil prices plummeted, European defense stocks fell, reports: The White House says a Russia-Ukraine framework may be reached this week!

Oil prices plummeted, European defense stocks fell, reports: The White House says a Russia-Ukraine framework may be reached this week!

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News that Russia and Ukraine are about to reach a framework agreement has caused market turbulence.

According to the latest media reports on the 18th, a senior White House official stated that it is expected that Russia and Ukraine will reach a framework agreement to end the conflict by the end of this month, "possibly as early as this week". Earlier, Huanqiu.com quoted U.S. Axios News, as some American and Russian officials told the outlet that the U.S. government has been engaged in "secret negotiations" with Russia to draft a new plan to end the Russia-Ukraine conflict.

The report says the U.S. plan contains 28 points, covering the realization of peace in Ukraine, providing security guarantees, maintaining European security, and handling future U.S.-Russia and U.S.-Ukraine relations. It is still unclear how the plan will handle the contentious issue of land control in eastern Ukraine.

It is worth noting that according to a Xinhua News Agency report Tuesday, Kremlin spokesman Peskov told media on the 18th that Russia will not send representatives to attend the Ukraine situation talks to be held in Turkey on the 19th of this month.

After the news of the framework agreement came out, European defense stocks fell in response — Rheinmetall fell 4%, BAE Systems, Leonardo, and others followed suit. According to reports, this peace plan does not involve Ukraine’s direct participation, nor does it seek Europe’s opinion.

Oil prices also plummeted, WTI crude oil’s loss widened to 3%, and Brent crude fell by 2.9%.

U.S.-Russia Secret Negotiation Framework Exposed

A senior White House official revealed that the Trump administration believes the current juncture is favorable for advancing peace talks. Officials believe that, given Zelensky's trouble with corruption scandals and the current front line situation, Ukraine is in a position where it needs to accept an agreement.

Details in the report show that the 28-point plan not only involves a ceasefire agreement, but also how to restore U.S.-Russia relations and address Russian security concerns. Russian negotiator Dmitriev expressed optimism, saying "We feel that Russia’s position is truly being heard."

In response, White House officials said: "The plan we will present to [Ukraine] is reasonable." The Trump administration believes that under domestic and external pressures, Zelensky will have no choice but to accept the current proposal.

High-level Military Visits Send a Signal

According to media reports, U.S. Army Secretary Dan Driscoll made an extremely unusual visit to Kyiv today, accompanied by two four-star generals and other senior U.S. military officials. They are expected to meet with Ukrainian President Zelensky and other top officials.

At the same time, according to CCTV News reported on the 19th, Zelensky will visit Turkey in an effort to “restart the stalled Russia-Ukraine peace talks.” Zelensky wrote on social media on the 18th: "We are preparing to restart the negotiations and have already drafted the proposals to be presented to partner countries... Doing everything possible to end the war is Ukraine's top priority."

These high-level contacts indicate that the peace process is accelerating. The U.S. is clearly conveying information about the peace framework to Ukraine through military channels, seeking Ukraine’s recognition of this framework.

Europe’s Marginalization Raises Market Concerns

Notably, according to reports, in the drafting of this peace plan, America’s European allies have been almost completely excluded. White House officials have made it clear that they "don’t care much about the Europeans" — a statement that may further aggravate transatlantic tensions.

Russian negotiator Dmitriev said that this plan is actually a "broader framework" aiming at "how to truly bring lasting security to Europe, not just Ukraine."

For Trump, this will be an important opportunity to fulfill his campaign promises. He pledged during his campaign to end the Ukraine war on his first day in office, but in the past year, his actions have not led to substantial progress in resolving the conflict. According to another earlier report from Huanqiu.com, Trump said on one occasion that resolving the Russia-Ukraine conflict is taking longer than he had expected.

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