Ukrainian drones struck a major oil refinery in the Moscow region, located 15 kilometers from the Kremlin, marking a significant attack on Russian energy infrastructure. The strike targeted facilities used for fuel supply and energy exports at a critical moment in diplomatic efforts to end the war.
The timing of the attack coincides with ongoing peace negotiations. Ukraine and Russia concluded a second round of US-brokered talks in Abu Dhabi on Thursday, conducting a major prisoner swap and agreeing to resume negotiations soon. However, Donald Trump's special envoy Steve Witkoff cautioned that "significant work remains" in the weeks ahead, tempering expectations of a swift resolution to Europe's biggest conflict since World War II.
The meetings represented the most substantive engagement between senior delegations from Kyiv and Moscow in months, suggesting a tentative revival of diplomatic efforts nearly four years into the war. Ukrainian President Volodymyr Zelenskyy described the trilateral talks with the United States and Russia as "not easy" but said Ukraine would remain constructive and seek a fair deal to end Russian aggression. Kyrylo Budanov, head of Ukraine's presidential office, called the negotiations "genuinely constructive" and thanked the United States and United Arab Emirates for mediating.
Russia's representative, Kirill Dmitriev, also struck a positive note, reporting progress and "forward movement" in discussions on ending the war. Russia separately signaled readiness to engage with more European leaders, saying it could "listen to any proposal" if it considered it a serious attempt to reopen diplomatic channels.
Western sanctions continue to pressure Russia's economy. US Treasury Secretary Scott Bessent said more American sanctions against Russia would depend on the progress of peace talks. He indicated he would consider new sanctions against Russia's shadow fleet, a step the Trump administration has not taken since returning to office in January 2025. Bessent credited existing sanctions against Russian oil companies Rosneft and Lukoil with helping bring Russia to the negotiating table.
The European Union's sanctions envoy David O'Sullivan said sanctions were having "significant impact" on the Russian economy, though not a complete solution. He expressed confidence that after four years of sanctions, their effects were clear, noting that "we may be, in the course of 2026, coming to a point where the whole thing becomes unsustainable" due to distortions in Russia's war economy.
The Russian economy faces its greatest strain since the early days of the invasion, with oil revenues plummeting, inflation running at about 6 percent, and interest rates at 16 percent.
Meanwhile, night-time shelling by Ukrainian forces inflicted "serious damage" in the Russian city of Belgorod near the border, according to the region's governor. Power was cut in some districts of the city, which lies about 40 kilometers from the Ukrainian border.