Ukraine’s GDP warrant falls by most in 3 years as ceasefire proposals falter

By Libby George

LONDON (Reuters) -Ukraine’s dollar bonds and GDP warrant tumbled more than 3 cents on Monday as hopes for ceasefire proposals with Russia from U.S. President Donald Trump appeared to falter.

The GDP warrant shed 3.67 cents - on track for the biggest daily loss since March 2022, the days just after Russia’s full scale invasion - to be bid at 71.39 cents on the dollar.

The bond maturing in 2035, part of a package of instruments that were restructured last year, lost 3.6 cents to be bid at 54.25 cents, the lowest level since mid-November, Tradeweb data showed.

The GDP warrant, an instrument linked to the country’s economic output growth, was created during Ukraine’s 2015 debt restructuring in the wake of Russia’s annexation of Crimea as a sweetener to creditors.

Trump expressed anger with Russian President Vladimir Putin on Sunday, threatening secondary tariffs on buyers of Russian oil, if he feels Moscow is blocking his efforts to end the war in Ukraine.

Trump also said that Ukrainian President Volodymyr Zelenskiy wants to back out of a critical minerals deal.

Ukraine’s debt had rallied after Trump’s reelection last year on hopes that he would quickly broker a ceasefire to the three-year-old war, which some investors believed could boost Ukraine’s economy.

But several delays and setbacks to Trump’s proposals have knocked prices for Ukraine’s debt this year.

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