Russia will "review" its negotiating position, citing an alleged attack by Ukraine on a Putin residence.

Russia accuses Ukraine of attempting to attack Putin's residence and says it will "review" its position in the peace negotiations, without abandoning them. According to Russian Foreign Minister Sergey Lavrov, Kyiv allegedly launched 91 drones on Monday night against the president's house in the Novgorod region, an attack that reportedly disabled its air defenses. Ukrainian President Volodymyr Zelenskyy denied the attack, calling it a "lie" by the Kremlin and warning that it is a pretext for attacking Ukrainian government buildings. Ukrainian Foreign Minister Andriy Sybiha described the Kremlin's strategy as "manipulation" and spoke of "the usual Russian tactic: accusing the other side of what you yourself are doing or planning." All of this dampened the expectations generated on Sunday by Zelenskyy's visit to Florida to meet with Donald Trump, when both leaders asserted that peace is "closer than ever." According to the Kremlin, Putin spoke by phone with Donald Trump to inform him of the alleged attack and the change in his position, although he made it clear, according to his political advisor Yuri Ushakov, that Russia still wants to work with the United States to find a way out of the war. Meanwhile, Moscow made it clear that there will be reprisals ("These reckless actions will not go unanswered," Lavrov warned) and says it has already selected Ukrainian targets. Zelensky warned that Moscow is preparing the ground to attack government buildings in Kyiv. The Kremlin's position contrasts with the optimism Zelensky expressed after his meeting with Donald Trump on Sunday. "We discussed all aspects of the peace framework and achieved significant results," Zelensky stated, expressing his gratitude to both Trump and the chief negotiators from Washington and Kyiv via his Twitter account. The Ukrainian president asserted that the plan includes security guarantees from the United States for his country for 15 years, although he had requested them for half a century. It is still unclear how these commitments would be implemented, but the Ukrainian leader has long demanded security guarantees "similar to Article 5" from Europe and the United States, referring to the NATO charter, according to which an attack against one member state should be considered an attack against all. Zelensky stated that both leaders agreed that "security guarantees are key to achieving lasting peace." "Ukraine is ready for peace," he emphasized to X, adding that "some documents have already been finalized or are being completed." "We will know in a few weeks."

However, after more than three hours of meetings, both leaders left without announcing or finalizing any major agreement. Trump and Zelensky did agree that it is a complex process that will take longer. Trump warned of the possibility that an agreement might not be reached. "We'll know in a few weeks," he said, while acknowledging that there are still a couple of "very thorny" issues. Negotiations between Kyiv and Washington are stalled on two points: the status of the Zaporizhzhia nuclear facility, now under Russian control, and, above all, the concession of Ukrainian territory in the eastern Donbas region.

"We've made a lot of progress, but we've really only achieved it in the last month. This isn't a one-day deal; it's a very complex matter," emphasized the US president, who hinted at the joint press conference that he might travel to Kyiv if it helps save lives and finalize the agreement.

Moscow rules out a ceasefire that would allow Ukraine to negotiate without the pressure of bombs, as demanded by Zelensky, who has also pledged to submit the agreement resulting from the negotiations to a referendum or parliamentary ratification. "A temporary ceasefire under the pretext of preparing for a referendum or other excuses only leads to a prolongation of the conflict and the resumption of fighting," said Kremlin advisor Yuri Uyxakov. Uyxakov himself warned that for a definitive cessation of hostilities, "a responsible and courageous political decision on the part of Kyiv is required above all (...) regarding Donbas." Putin, therefore, does not want a ceasefire until he has secured territorial concessions from Ukraine, beyond the current front, to annex the entire Donbas region.

Military companies plummet on the stock market

The optimism following the Putin-Zelensky meeting this morning translated into sharp declines in the stock market share of major European military companies. Progress toward a potential resolution of the conflict in Ukraine weighed on shares such as Germany's Rheinmetall (-3.37%), Italy's Leonardo (-4.7%), France's Thales (-1.57%), and Britain's BAE Systems (-1.87%) at the opening of markets on Monday. Spain's Indra fell by as much as 1.89%. Despite the declines recorded in the first minutes of trading on Monday, European defense sector stocks are on track for record gains in 2025, and, as the year draws to a close, Rheinmetall's shares have risen by around 150%. while Indra rises 170%Leonardo by more than 80% and Thales by 60%, an annual increase driven by the new European rearmament policy.