Key Takeaways
- Russian strikes have reportedly damaged facilities in two Ukrainian Black Sea ports, impacting foreign-flagged vessels and infrastructure, according to Ukraine's Deputy Prime Minister.
- Polish Prime Minister Donald Tusk expressed optimism that the war in Ukraine "may end quite soon" and that "peace in Ukraine is on the horizon," signaling a potential breakthrough in the protracted conflict.
- German Chancellor Friedrich Merz emphasized the need for "transparency, honesty from everyone, also from Russia" as European and Canadian partners push forward the peace process for the Ukraine war.
- China announced it would exempt Value-Added Tax (VAT) for the sale of some homes, a move aimed at stabilizing its beleaguered real estate market.
Ukraine Ports Under Attack Amidst Shifting Peace Rhetoric
Russian strikes have reportedly caused damage to facilities in two Ukrainian Black Sea ports, according to Ukraine's Deputy Prime Minister. The attacks reportedly hit Slovakia-, Palau-, and Liberia-flagged vessels in ports within Ukraine's Odesa and Mykolaiv regions. These actions align with Russia's perceived objective to sever Ukraine's access to the Black Sea. While no casualties were reported in the recent strikes, the attacks also led to power outages and damaged civilian infrastructure, including elevators and warehouses in the Odesa region. Separately, drones also reportedly damaged a locomotive and a freight car at the Kovel railway station, approximately 60 kilometers from Poland.
Concurrently, Polish Prime Minister Donald Tusk offered a notably optimistic outlook on the conflict, stating that there are "reasons to hope war may end quite soon" and that "peace in Ukraine is on the horizon". This statement, made during a government meeting, suggests a potential shift in the diplomatic landscape. However, this optimism follows earlier reports from December 29, 2025, where Tusk indicated that peace negotiations with Russia were "still far" and underscored the critical need for unity between Ukraine and its Western allies to prevent Russia from dictating peace terms.
German Chancellor Pushes for Peace and Transparency
German Chancellor Friedrich Merz engaged in discussions with European and Canadian partners as part of the Berlin format, reaffirming efforts to advance the peace process for the Ukraine war. Merz stressed the importance of "transparency, honesty from everyone, also from Russia" at this critical juncture. These remarks come as diplomatic tensions persist, including recent accusations from Moscow regarding an alleged drone attack on President Vladimir Putin's residence, which Kyiv has denied.
The Chancellor has consistently expressed optimism regarding a "genuine peace process" for Ukraine, highlighting what he described as "great diplomatic momentum" since the conflict began. Merz has also underscored the pivotal role of the United States, with figures like Special Envoy Steve Witkoff and unofficial advisor Jared Kushner, in securing a ceasefire that upholds Ukrainian sovereignty and includes substantial security guarantees.
China Implements Tax Relief to Boost Property Market
In a significant economic development, China announced a new policy to exempt Value-Added Tax (VAT) for the sale of some homes, effective December 30, 2025. This measure is designed to foster the "stable and healthy development of the real estate market," which has faced considerable challenges. The policy specifically grants VAT exemption to individuals selling homes they have owned for two years or more in major cities such as Beijing, Shanghai, Guangzhou, and Shenzhen. Furthermore, the distinction between "ordinary" and "non-ordinary" housing for VAT purposes has been removed in these key urban centers, streamlining the tax structure and providing broader relief to homeowners. This initiative is part of a broader governmental strategy to stimulate China's slowing real estate sector.
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.