Biden, Putin agree in principle to France's summit proposal

[HONG KONG] Presidents Joe Biden and Vladimir Putin have "accepted the principle" of a summit on the condition that Russia doesn't invade Ukraine, according to a statement from France.

French President Emmanuel Macron proposed that the US and Russian leaders hold a summit to discuss security and strategic stability in Europe, followed by a second summit with relevant stakeholders, the French presidential office said in a statement late Sunday (Feb 20). The substance would be prepared during a meeting by US Secretary of State Antony Blinken and Russian Foreign Minister Sergei Lavrov on Thursday, it said.

The White House confirmed that Biden has accepted the meeting in principle if Russia doesn't invade. "We are always ready for diplomacy," White House Press Secretary Jen Psaki said in a statement. "We are also ready to impose swift and severe consequences should Russia instead choose war. And currently, Russia appears to be continuing preparations for a full-scale assault on Ukraine very soon."

US equity futures turned higher and Asian stocks pared losses following the statements. Demand for havens such as sovereign bonds and gold eased.

The Biden administration has warned for weeks of a potential Russian attack on Ukraine, with the US president saying on Friday he's convinced Putin has decided to move and that an invasion could come within days.

Moscow continues to deny it plans to invade Ukraine and says it is already pulling troops back from areas near the border, though the US has disputed that.

The timing and format of the summit are still to be determined, and it will be called off if Russia invades Ukraine, according to a US official who asked not to be identified. An hourlong call between Biden and Putin earlier this month failed to make headway in easing tensions, leaving both sides at an impasse.

Biden warned of "severe costs" while Putin accused the US of failing to provide him with security assurances he needs to back down. Since then, the US has ratcheted up its rhetoric, asking Americans to leave Ukraine, while making clear it won't send in troops. The US has also told allies that any Russian invasion of Ukraine would potentially see it target multiple cities beyond the capital Kyiv, according to 3 people familiar with the matter. BLOOMBERG