Ukraine’s sovereign Eurobonds have edged lower in recent weeks, reflecting growing investor impatience over the lack of a clear resolution to the war and uncertainty surrounding the country’s long-term financing needs, reported Ukraine Business News.

Since the beginning of January, some Ukrainian Eurobonds have fallen in price by about $0.02, reversing part of a rally seen at the end of last year. From mid-December to year-end, the bonds had gained around $0.07 per $1,000 of nominal value after the EU agreed to provide Kyiv with new financial support.

Market participants said the recent decline underscored lingering doubts over the timing and terms of any peace settlement. Ukraine’s Eurobonds due in February 2034, for example, were quoted at about $0.62 per dollar of nominal value at the end of December, but have since slipped to around $0.60.

President Volodymyr Zelenskiy has said that an agreement on US security guarantees for Ukraine is in its final stages, raising hopes of stronger international backing. However, investors remain cautious amid uncertainty over whether Russia would accept a proposed peace plan and how Ukraine’s vast post-war reconstruction would be financed.

Martin Bersetsche, founder of frontier markets hedge fund Frontier Road, said his view on Ukrainian bonds had improved after the EU agreed in December to extend a new €90bn loan to Kyiv. Even so, he said further reassessment would depend heavily on the eventual endgame of the war.

Analysts said that while international financial support has provided short-term relief, Ukraine’s bond prices are likely to remain volatile until there is greater clarity on both the conflict’s outcome and the country’s future debt sustainability.