Key Takeaways
- U.S. Special Envoy Steve Witkoff held "highly productive" talks with Russian President Vladimir Putin in Moscow, with President Trump declaring "great progress was made" towards ending the war in Ukraine.
- Despite these diplomatic overtures, the U.S. plans to proceed with imposing secondary sanctions on Russia's trading partners by Friday, including a significant 50% tariff on Indian exports over continued Russian oil purchases.
- Ukrainian President Volodymyr Zelenskiy affirmed a "productive conversation" with Trump, stressing that Russia must end the war it started and welcoming the prospect of tougher U.S. sanctions.
- In a separate financial development, a U.S. 10-Year Note sale saw its high yield rate decrease to 4.255% from 4.362%, with a bid-cover ratio of 2.35.
Diplomatic Efforts and Reported Progress
U.S. Special Envoy Steve Witkoff engaged in a "highly productive" three-hour meeting with Russian President Vladimir Putin in Moscow on Wednesday, August 6. Following the discussions, President Donald Trump announced on Truth Social that "Great progress was made!" and that he had updated some European allies, with "Everyone agrees this War must come to a close". This meeting occurred just two days before Trump's self-imposed Friday deadline for Russia to agree to a ceasefire in Ukraine or face punitive economic measures.
A Kremlin aide, Yuri Ushakov, described the conversation as "useful and constructive," indicating that it focused on the Russia-Ukraine conflict and the potential for strategic cooperation between the U.S. and Russia. Witkoff's visit marks his fifth trip to Moscow this year, part of ongoing efforts to find a diplomatic resolution to the conflict.
Sanctions Policy and Economic Pressure
Despite the reported progress in Moscow, the Trump administration intends to move forward with a new round of secondary sanctions against Russia this Friday. These measures are designed to target countries that continue to purchase Russian oil, thereby supporting Moscow's war economy.
Notably, the U.S. has already doubled tariffs on Indian exports to 50%, citing India's continued acquisition of Russian oil. A White House official confirmed that while the meeting with Putin was positive, the secondary sanctions are still expected to be implemented, signaling Washington's resolve to maintain economic pressure on the Kremlin. Trump has previously expressed skepticism about the effectiveness of sanctions, noting that Russians are "wily characters and pretty good at avoiding sanctions," but has pressed forward with the threats.
Ukraine's Stance and Calls for Just Peace
Ukrainian President Volodymyr Zelenskiy confirmed a "productive conversation" with President Trump, during which they discussed Witkoff's visit to Moscow. Zelenskiy emphasized that the war "should see a just end" and reiterated that "Russia must end the war that it itself started". He also welcomed the threat of tougher U.S. sanctions, believing that Moscow is "sensitive" to the prospect of new penalties, which could significantly alter the situation.
Zelenskiy further stated that Trump was "fully informed about Russian strikes on Kyiv and other cities and communities," highlighting the ongoing brutality of Russian attacks. The leaders also reportedly discussed expanding defense cooperation, with Ukraine having prepared a draft agreement on drone cooperation with the U.S.
U.S. Treasury Market Update
In a separate economic development, the U.S. Treasury conducted a 10-Year Note sale. The high yield rate for this auction was 4.255%, a decrease from the previous rate of 4.362%. The bid-cover ratio, an indicator of demand, stood at 2.35, compared to the previous 2.61. Direct accepted bids accounted for 19.6% (previously 23.7%), while indirect accepted bids were 64.2% (previously 65.4%). The "When Issued" (WI) yield was 4.244%.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.