May 26: Russia launched a fresh assault on Ukrainian-held twin cities in the battlefield Donbas region, threatening to close off the last main escape route for civilians trapped in the path of the advance. read more

DIPLOMACY

* The European union hopes to be able to agree sanctions on Russian oil before the next meeting of its leaders, President Charles Michel said.

* The European Commission proposed on Wednesday to make breaking EU sanctions against Russia a crime, a move that would allow EU governments to confiscate assets. read more

FIGHTING

* Russian forces were close to encircling two key towns in Ukraine's industrial Donbas region, with constant mortar bombardment destroying houses and killing civilians, Ukrainian officials said.

* Some 150 people had been buried in a mass grave in one of the towns, Lysychansk, and police were collecting more bodies, said the regional governor.

* Shelling also killed one civilian and damaged buildings in the south, officials said. Reuters could not immediately verify battlefield reports.

ECONOMY

* The United States pushed Russia closer to the brink of a historic debt default by not extending its license to pay bondholders. read more

* President Vladimir Putin ordered 10% rises in pensions and the minimum wage, but said not all of Russia's economic problems were linked to the war in Ukraine. read more

* Russia is ready to allow vessels carrying food to leave Ukraine in return for the lifting of some sanctions, its deputy foreign minister was quoted as saying. Ukraine's foreign minister called the proposal "blackmail." read more

QUOTES

"It is much more dangerous giving in to Putin than provoking him," Estonian Prime Minister Kaja Kallas said in a speech. "All these seemingly small concessions to the aggressor lead to big wars. We have done this mistake already three times: Georgia, Crimea and Donbas."

COMING UP

* An EU summit May 30-31 could see divisions between member states who want to take a hard line against Moscow and those calling for a ceasefire. read more

* A U.N. trade official is set to visit Moscow in coming days to discuss resumptions of Russian fertilizer exports. read more

 
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