Russian stocks in US afternoon trading have caught fire as the
outcome from the Geneva discussions shows some tangible progress
beyond merely a constructive tone that was all markets could have
expected to gain from the event. Clearly going into the
Kerry/Lavrov summit there was a low bar on a positive
outcome. What we now have is a step back from the brink. The
RSX ETF rallied intra-day 5.5% from 12:30 to 2:30 as details from
the joint statement began to hit the tapes.
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RSX Rallies as Geneva Talks Surprise[/caption]
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Here is the text of the joint statement today from the
four parties in the mix: US, EU, Russia, Ukraine:
The Geneva meeting on the situation in Ukraine agreed on initial
concrete steps to de-escalate tensions and restore security for all
All sides must refrain from any violence, intimidation or
provocative actions. The participants strongly condemned and
rejected all expressions of extremism, racism and religious
intolerance, including anti-Semitism.
All illegal armed groups must be disarmed; all illegally
seized buildings must be returned to legitimate owners; all
illegally occupied streets, squares and other public places in
Ukrainian cities and towns must be vacated.
Amnesty will be granted to protesters and to those who
have left buildings and other public places and surrendered
weapons, with the exception of those found guilty of capital
It was agreed that the O.S.C.E. Special Monitoring
Mission should play a leading role in assisting Ukrainian
authorities and local communities in the immediate implementation
of these de-escalation measures wherever they are needed most,
beginning in the coming days. The U.S., E.U. and Russia commit to
support this mission, including by providing monitors.
The announced constitutional process will be inclusive,
transparent and accountable. It will include the immediate
establishment of a broad national dialogue, with outreach to all of
Ukraine's regions and political constituencies, and allow for the
consideration of public comments and proposed amendments.
The participants underlined the importance of economic and
financial stability in Ukraine and would be ready to discuss
additional support as the above steps are implemented.