What we covered
• Russian President Vladimir Putin shrugged off the potential effects of US sanctions on Russia’s two largest oil companies, saying that they will not have much of an impact on the Russian economy.
• Oil prices rose sharply as traders are anxious about a squeeze on global supply. Indian refiners are already moving to slash imports of Russian oil, Reuters reports.
• Putin also commented on the cancellation of an anticipated meeting with US President Donald Trump, saying that “dialogue is always better than confrontation.”
• Ukrainian President Volodymyr Zelensky urged EU leaders in Brussels today to provide Ukraine with long-range weaponry and to bolster weapons production with frozen Russian assets held by Europe.
That concludes our live coverage for today. More on Russia here.
Lithuanian ambassador says Russians are "testing NATO" with alleged incursions
Lithuanian Ambassador to the US Gediminas Varvuolis says alleged Russian incursions into NATO airspace are a reality European countries have to deal with on an almost daily basis.
Speaking to CNN’s Jim Sciutto on Thursday, Varvuolis said the frequency of such occurrences likely means that the Russians are “testing NATO” and its protocols.
His comments come hours after Lithuania claimed two Russian military planes briefly violated its airspace on Thursday – a claim Russia denies.
The ambassador warned that Russia is conducting a hybrid war against Europe that should be taken “very seriously.”
When asked if Lithuania welcomes US President Donald Trump’s new sanctions on Russia, he said, “We have to make sure that they understand on the Russian side that there is no other way but to stop this, this killing and stop the war.”
But he warned Russia will try to find a way around the sanctions.
“This is not the end of the story,” Varvuolis said. “They will find, or try to find, ways to circumvent. But we have to persevere.”
EU pledges financial aid to Ukraine but demurs on Russian assets plan
EU leaders agreed on Thursday to meet Ukraine’s pressing financial needs for the next two years but stopped short of explicitly endorsing the use of Russian frozen assets to give Kyiv a large loan, after concerns were raised by Belgium.
The text, seen by Reuters ahead of its official publication, asked the European Commission to present as soon as possible “options for financial support based on an assessment of Ukraine’s financing needs.”
The text also said that, subject to EU law, “Russia’s assets should remain immobilized until Russia ceases its war of aggression against Ukraine and compensates it for the damage caused by its war.”
But it did not explicitly endorse using the assets to fund a “reparation loan” worth some 140 billion euros ($163 billion), as the commission has proposed with the backing of many EU member countries.
Many EU diplomats had expected the leaders to ask the commission to come forward with a formal legal proposal on the reparation loan plan based on the Russian assets.
But Belgian Prime Minister Bart De Wever, whose country holds the frozen assets that would be used in the scheme via securities depository Euroclear, laid out three demands to guarantee that his country would not shoulder all the risks.
He called on all EU members to share the costs of any legal action pursued by Russia and contribute financially if the money ever had to be paid back. He also said Russian frozen assets held by other countries should be part of the scheme.
White House says sanctions against Russia are "pretty hefty"
A new set of sanctions of Russia will apply “a lot” of pressure on Moscow, the White House said Thursday, suggesting President Donald Trump could eventually decide to ramp up the measures.
“If you read the sanctions and look at them, they’re pretty hefty,” press secretary Karoline Leavitt said at a briefing, citing reports that China and India — the largest buyers of Russian oil — were scaling back their purchases.
“It’s full court press for sure, and we expect that these sanctions are going to do harm,” she said.
A day earlier, the Trump administration imposed sanctions on Russia’s two largest oil companies as it called on Moscow to agree to an immediate ceasefire in Ukraine.
Asked whether additional sanctions could come down the line, Leavitt left the door open.
“I’ll leave that to the president to decide,” she said.
Lithuanian president says Russian military planes violated their airspace
Russian planes violated the airspace of NATO member Lithuania on Thursday night, Lithuanian President Gitanas Nausėda said on X.
He claimed that the aircraft – a fighter jet and transport plane – came from the Kaliningrad region in the southwest.
“This is cruel violation of international law and territorial sovereignty of Lithuania, and we have to react to this,” Nausėda said in a video.
Russia denied that its military planes violated Lithuanian airspace.
The Russian defense ministry said Su-30 fighter jets conducted scheduled training in the Kaliningrad region and did not deviate from their flight routes.
“The flights were carried out in strict accordance with the Rules for the Use of Airspace over the Territory of the Russian Federation,” the ministry said.
Lithuania’s military said the planes were possibly conducting refuelling exercises when they entered the airspace for about 700 meters and departed after about 18 seconds.
Two Spanish Air Force fighter jets, which are performing a NATO air policing mission, were scrambled to the site and are currently conducting air patrols, Lithuania’s military said in a statement.
Lithuania’s foreign ministry later said it summoned the Russian charge d‘affaires to protest the alleged violation.
“Once again, it confirms the importance of strengthening European air defence readiness,” President Nausėda wrote on X.
Last month, NATO said it intercepted three Russian jets that violated Estonia’s airspace. The Russian defense ministry at the time denied the claim, insisting its flights were conducted “in strict accordance with international rules.”
This post has been updated.
White House: Trump-Putin summit scrapped because Russian leader wasn't interested enough in peace
White House press secretary Karoline Leavitt told CNN Thursday that President Donald Trump decided to announce new Russia sanctions and call off a planned meeting between himself and Russian President Vladimir Putin because he had “not seen enough interest” in “moving the ball forward towards peace” from the Russian side.
“The President has always maintained that he would implement sanctions on Russia when he felt it was appropriate and necessary – and yesterday was that day,” Leavitt told CNN’s Kristen Holmes. “I think the president has also long expressed his frustration with Vladimir Putin, and frankly, both sides of this war, and he’s always said in order to negotiate a good peace deal, both sides need to be interested in a good peace deal.”
Speaking to reporters at the White House Wednesday, Trump said he’d “canceled” the Putin meeting, adding, “It didn’t feel like we were going to get to the place we have to get – so I canceled it, but we’ll do it in the future.”
Leavitt added Thursday: “And so, a meeting between these two leaders is not completely off the table – I think the President and the entire administration hopes that one day that can happen again– but we want to make sure that there’s a tangible positive outcome out of that meeting, and that it’s a good use of the President’s time.”
Both Zelensky and Putin have made public statements in the last few hours. Here's what we've been covering:
The leaders of Russia and Ukraine have both separately made public statements in the last few hours, following the implementation of more sanctions against Moscow by the West.
Earlier today, the European Union announced a 19th round of sanctions against Russia, which targets sectors including energy, finance and the military.
The bloc joins US President Donald Trump in its financial penalties against Moscow. On Wednesday, the Trump administration imposed sanctions on Russia’s two largest oil companies in a bid to end the war in Ukraine.
Here’s what we’ve been covering today:
- Putin shrugs off sanctions: In a televised speech, Russia’s leader Vladimir Putin said that the US sanctions on Russian oil will have little impact on his country’s economy.
- Oil prices increase: Oil prices have risen sharply following the announcement of the US sanctions. Putin said that he had warned Trump that this would happen.
- Zelensky addresses Brussels: Ukraine’s President Volodymyr Zelensky met with European leaders in Brussels. He told journalists that frozen Russian assets held by the bloc should be used for weapons production.
- Journalists killed in Ukraine: Meanwhile, two Ukrainian journalists were killed in a Russian strike on eastern Ukraine, and another was injured, according to Zelensky. He said that 135 media workers have been killed since Russia’s full-scale invasion in 2022.
Two Ukrainian journalists killed in Russian drone strike on car, Zelensky says
Two Ukrainian journalists were killed and another was injured in a Russian drone strike on a car they were in earlier today, according to Ukraine’s President Volodymyr Zelensky.
The journalists – Olena Hubanova, Yevhen Karmazin and Oleksandr Kolychev – were reporters from Ukraine’s “Freedom” television channel, Zelensky said on social media, offering his condolences to their loved ones.
“Their courage in reporting the truth about Russian aggression against Ukraine will never be forgotten,” he continued.
According to Zelensky, Russia has killed 135 media workers since launching its full-scale invasion of Ukraine in 2022.
Alain Berset, the secretary general of the Council of Europe, said that he was “shocked and saddened” by the attack on the journalists.
“We honor their courage and reaffirm our commitment to truth, justice, and press freedom,” Berset said.
Ukraine and Europe should use frozen Russian assets to bolster weapons production, Zelensky says
Ukrainian President Volodymyr Zelensky has told journalists in Brussels that some of the hundreds of billions of dollars of frozen Russian assets held by the European Union should be used to bolster the weapons production of Ukraine, Europe and their partners.
“Russia brought war to our land, and they have to pay for this war,” Zelensky said.
The Ukrainian leader was in Brussels for a meeting of European leaders, at which EU member states adopted their 19th package of sanctions against Russia.
Zelensky thanked the European countries for the new sanctions, as well as the US for its recent energy sanctions against Moscow.
When asked about his recent meeting with US President Donald Trump, the Ukrainian leader said the results were “not bad,” noting that it led to both the energy sanctions and the cancellation of a planned meeting between Trump and Russian leader Vladimir Putin in Budapest, Hungary.
“We will see, I don’t know, really,” he said, receiving laughs from the press room. “Each day brings something.”
Zelensky also stressed that any land swaps between his country and Russia would not be acceptable.
"Dialogue is always better than confrontation," Putin says of canceled Budapest meeting with Trump
Russian President Vladimir Putin also just discussed his canceled meeting with US President Donald Trump, which was initially planned to be taking place in Budapest, Hungary in the coming weeks.
“It would be a mistake for both me and the US president to approach this lightly and come away from this meeting without the expected result,” Putin said, emphasizing that the meeting was originally proposed by the US side.
Now, Trump has decided to “postpone” the meeting, Putin said.
“That is why we have always supported the continuation of dialogue, and we continue to support it now,” Putin said.
Russia's response to a Tomahawk strike would be "serious, if not overwhelming," Putin says
Russia’s response to any potential Tomahawk strike on its territory would be “serious, if not overwhelming,” Russian President Vladimir Putin said just minutes ago.
Though the US has not agreed to allow Ukraine the use of the missiles, the fact that Kyiv is trying to get permission to use them is “an attempt at escalation,” Putin said.
“But if such weapons are used to strike Russian territory, the response will be very serious, if not overwhelming. Let them think about that,” he said.
"No self-respecting country ever does anything under pressure," Putin says
Russia’s President Vladimir Putin has just spoken about the US’ latest sanctions on his country’s largest oil companies, saying that they will not have much of an impact on the Russian economy and calling them an attempt to put pressure on Moscow.
“No self-respecting country ever does anything under pressure,” he said.
The Russian leader said that, in a conversation with his US counterpart Donald Trump, he had warned that the sanctions would impact global oil prices, including in the US.
Track oil prices after the US sanctioned Russian oil giants
Oil prices rose sharply today as traders worried about a squeeze on global supply after the US imposed sanctions on Russia’s two largest oil companies.
Here’s where prices are right now:
Sanctions prove Trump ready to "exert pressure" on Putin, analyst says
The director of the Ukraine forum at London-based international affairs think tank Chatham House welcomed US President Donald Trump’s decision to impose sanctions on two Russian oil companies, saying, “It’s a very significant and positive development for Ukraine.”
Orysia Lutsevych said the move demonstrates Trump is ready to shift his approach toward President Vladimir Putin, who back in August had the red carpet rolled out for him as the two leaders met for talks in Alaska. “He is willing to exert some pressure, so that’s good news,” she added.
The analyst emphasized Russia’s dependence on its oil exportation, adding that the hit will be felt not only in the Russian economy, but also through political instability.
“Russia relies heavily in its budget on oil and gas revenues, so that will start diminishing. But also it will put additional pressure on the stability of Putin’s regime,” she said.
Lutsevych said she expects it will be difficult to get Putin around a negotiation table because, she said, his ultimate objective is not to achieve a ceasefire with Ukraine. “He’s committed to subjugating and destroying Ukraine,” she added.
But Lutsevych thinks the sanctions are a step in the right direction as they will likely weaken Russia’s war efforts. “They will cripple Russian capacity to wage war…Putin and his cronies will still want to wage war but they will have less and less resources to do so,” she said.
Europe vows to bankroll Ukraine for next 2 years as it eyes Russian frozen assets
The European Union will agree in principle to finance Ukraine for the next two years, EU Council chief Antonio Costa said, despite a Belgian threat to block its plan to use Russian frozen assets to aid Kyiv.
Ukrainian President Volodymyr Zelensky said a quick passage of the plan to use the immobilized Russian assets to provide Ukraine with a 140 billion euros ($163.3 billion) loan would save lives.
Belgian Prime Minister Bart De Wever, whose country holds the frozen assets that would be used, laid out three demands to guarantee his country would not shoulder all the risks.
Otherwise, “I will do everything in my power at the European level, also at the national level, politically and legally to stop this decision,” De Wever said at today’s EU summit.
He called on all EU members to share the costs of any legal action pursued by Russia and contribute financially if the money ever had to be paid back. He also said Russian frozen assets held by other countries should be part of the scheme.
But Costa made clear he expected a deal in principle today, with technical details to be decided later.
EU leaders are expected to instruct the European Commission to come up with a formal legal proposal on the frozen assets plan, with Zelensky urging them to do that fast.
Trump effect sparks skyrocketing European defense spending, top arms manufacturer tells CNN
The CEO of Rheinmetall, Germany’s largest arms manufacturer, said US President Donald Trump has helped jolt Europe into drastically boosting its defense spending, leading to a huge increase in orders for his company.
“The pressure from the Americans is very high,” Armin Papperger told CNN. “I think without the pressure from the Americans, the German governments — and also the European governments — would not make that decision (to hike defense spending).”
Facing a push from US President Donald Trump, NATO leaders agreed in June to ramp up defense spending to 5% of their countries’ GDP, which Trump called a “big win.”
The move injected fresh urgency into a continent that was already rearming in the wake of Russia’s invasion of Ukraine, Papperger said. He said he expects 50 billion euros’ (about $58 billion) worth of orders annually from EU countries “over the next years.”
Buying more ammunition has been “priority number one” for NATO countries, he said, with stockpiles depleted over more than three years of arming Ukraine. Air defense has been “priority number two,” he added, and orders for naval equipment have also surged.
Drones have become a key piece of military technology in the Ukraine war. But Papperger hit back at the suggestion that drones have made armored vehicles — a major Rheinmetall product — obsolete.
CNN reported last year that the US and Germany had foiled a Russian plot to assassinate Papperger.
Asked whether he still fears for his safety, Papperger — who had a large police presence with him — said he was not so concerned. “I really feel good, they do a good job. I’m safe,” he said.
Watch more from CNN’s recent visit to Rheinmetall:
Some European countries are increasing their defense spending as tensions grow amid the war between Russia and Ukraine. CNN's Frederik Pleitgen visited Rheinmetall in Germany, one of the largest defense companies in Europe, to look at some of the weapons and ammunition they're supplying to militaries across the continent.
Can sanctions bring Putin to the table? It depends on a few factors
Oil prices are going up today after the Trump administration sanctioned Russia’s two largest oil companies.
But will it have the effect of getting Russian leader Vladimir Putin to participate in negotiations? CNN’s Clare Sebastian reports:
The US has imposed sanctions on Russia’s two largest oil companies in a bid to push Moscow toward an immediate ceasefire in Ukraine. CNN's Clare Sebastian weighs in how much impact the move could have.
Russia's foreign ministry "open" to continuing dialogue with US on possible Trump-Putin meeting
Russia’s Ministry of Foreign Affairs is “open to continued contacts” with the US State Department on a potential meeting between US President Donald Trump and Russian President Vladimir Putin, according to spokesperson Maria Zakharova.
She added that the foreign ministry expects the Trump administration to continue to share its “considerations and motives” regarding the “steps being taken” toward a peace deal in Ukraine — what she described as a “Ukrainian settlement.”
Trump yesterday announced the cancellation of an anticipated meeting between him and Putin in Budapest.
The US president suggested it could be a “waste of time” for now. However, his administration appears to have left the door open for the possibility of a further meeting, despite last night slapping sanctions on two major Russian oil companies.
How will the US sanctions work? A primer
The United States has sanctioned Russia’s two largest oil companies, which account for more than half of Russia’s crude oil exports.
Any financial institution that helps facilitate transactions for these companies will now think again about doing so, says Elina Ribakova, a senior fellow at the Peterson Institute for International Economics, a think tank based in Washington, DC.
If a bank is caught doing business with sanctioned companies, “they will lose access to US markets, the US dollar and US payments systems,” Ribakova told CNN. “So effectively they will cease to exist as a bank.”
Although Russia may try to disguise the fact that oil is coming from one of the sanctioned companies, it will still have to cut the price of its exports to compensate buyers for the risk of doing business with them.
Ribakova said that India – a major buyer of Russian oil since 2022 – will now be asking of Russia: “If I can get cheap oil from Saudi Arabia and the UAE, why do I need to bother with you? You’re toxic. It’s hard to make transactions with you.” To stop buyers looking elsewhere, Russia will have to sell at a discount, she explained.
The need for that discount could erode, however, if the US shows it is not “serious” about enforcing its sanctions.
“If they don’t do any analysis and enforcement in the next two months, the discount will become very small again. It’s like if I tell you to pay 60% tax, but then don’t check your tax records. At some point, you won’t pay that tax anymore,” she said.
New US sanctions already having an effect as India reportedly set to curb Russian oil imports
The Trump administration can celebrate an early sign of success as its sanctions on Russia’s two largest oil companies, announced late on Wednesday, have already prompted moves by Indian refiners to slash imports of Russian oil, according to Reuters.
Reliance Industries, the top Indian buyer of Russian crude, controlled by billionaire Mukesh Ambani, now plans to reduce or stop imports of Russian oil to comply with the sanctions, Reuters said, citing industry sources.
Meanwhile, India’s state refiners, including Indian Oil and Bharat Petroleum Corp, are working to ensure no supply will be coming directly from Rosneft and Lukoil, the freshly sanctioned Russian oil companies, Reuters reported.
Why this is significant: India is a big importer of Russian oil and one of relatively few remaining buyers globally. According to RBC Capital Markets, Rosneft and Lukoil account for around half of Russia’s oil exports.
Although the latest US sanctions could dent Russia’s hugely important oil revenues, they may also increase competition for non-Russian oil as India enters the fray, while Moscow’s barrels are increasingly shut out from the global market.
That is the risk signaled by Helima Croft at RBC Capital Markets, who wrote in a note late on Wednesday: “Prior to this point, US policy had been designed to avoid a serious Russian supply disruption.”
And such a disruption could raise global oil prices.
