Summary
- President Trump and President Putin announced they agreed to immediately begin peace negotiations for the Ukraine war.
- Peace talks are increasing the possibility of Korean companies participating in Ukraine's reconstruction projects.
- Reconstruction-related stocks surged in the Korean market following the peace talks announcement.
Trump and Putin Reach Sudden Agreement
"Immediate Start of Negotiations" in Phone Call
Zelenskyy Also "Wants to Achieve Peace"
Korean Companies May Participate in Reconstruction
Construction and Heavy Equipment Stocks Surge
U.S. President Donald Trump announced on the 12th (local time) that he agreed with Russian President Vladimir Putin to immediately begin peace negotiations for the Ukraine war. All eyes are on whether the Ukraine war, which began with Russia's invasion on February 24, 2022, will end after three years.
After speaking with President Putin, Trump wrote on social media, "We agreed that we want to stop the deaths of millions resulting from the war (between Russia and Ukraine)," adding that they "agreed to have negotiation teams begin (peace) talks immediately." He expressed that he had "a strong feeling the negotiations will succeed." A Kremlin spokesperson confirmed that the two leaders spoke for an hour and thirty minutes. This is the first confirmed call between the two leaders since the Ukraine war began. Trump later spoke with Ukrainian President Volodymyr Zelenskyy and reported that "he (Zelenskyy), like Putin, wants to achieve peace."
Meeting with reporters, Trump stated that "there will be a ceasefire in the near future" and that he "will meet with President Putin in Saudi Arabia soon." While not revealing specific peace terms, he expressed opposition to Ukraine joining NATO, saying it was "not practical." Regarding Ukraine's possibility of recovering territory to pre-2014 levels, he said "that seems unlikely" but "some (territory) will return." This suggests a greater likelihood of accepting Russia's demands regarding Ukraine's NATO membership and occupied territories. Russia annexed Crimea, then Ukrainian territory, in 2014, and has occupied about 20% of Ukraine's mainland since invading in 2022.
As peace talks begin, expectations are rising for Korean companies' participation in Ukraine's reconstruction. Since Korea has provided defensive weapons to Ukraine through indirect support via the United States, Korean companies are likely to participate once reconstruction efforts begin in earnest. In domestic markets today, stocks related to Ukraine reconstruction surged, with HD Hyundai Infracore, a heavy equipment company, jumping 14%.
Washington=Special Correspondent Sang-eun Lee selee@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
