War in Ukraine: latest news. Bloomberg: Putin says negotiations have reached an impasse; Russia is preparing for an escalation

Firstly, he sought to mend relations with Brussels and reached an agreement that enabled the release of €16.4 billion in frozen EU funds. He then lifted Hungary’s veto on reimbursing EU countries for weapons sent to Ukraine. In early August, Magyar also announced a review of the Paks II nuclear agreement, one of the landmark agreements that Orbán signed with Russia’s Rosatom in 2014. What has not changed is the Hungarian government’s stance on a fast-track procedure for Ukraine’s accession to the EU, to which Magyar continues to object.

Meanwhile, a fire broke out overnight at the Russian Norsi oil refinery in Kstovo, in the Nizhny Novgorod Oblast, following reports of a drone attack. According to the Kyiv Independent, this has been reported by local Telegram channels and footage posted online.

The Lukoil refinery is one of Russia’s most important oil processing and petrol production facilities. Before news of the fire broke, residents in the Kstovo area had reported an air raid alert and the presence of drones in the sky. Shortly afterwards, social media channels began posting photos and videos taken by residents showing flames engulfing the refinery.

Kstovo is situated about 800 kilometres from the Ukrainian border. Norsi, or the Lukoil-Nizhegorodorgsintez refinery, is Russia’s fourth-largest oil refinery and second-largest producer of petrol, with an annual processing capacity of around 15–17 million tonnes of crude oil. It also produces bitumen, diesel and aviation fuel, which are used to support Russian forces. Ukraine has repeatedly struck the refinery in 2026, including attacks on 5 April, 20 May, 24 June and 2 July. Some of these attacks forced the closure of certain production units.

The Kremlin has rejected the peace proposal put forward by Zelensky, which envisages a free economic zone managed by third countries. “The Donbass is part of the Russian Federation,” reiterated spokesperson Peskov. Meanwhile, Zelensky thanked Xi for his good wishes on the occasion of the 35th anniversary of Ukrainian independence and wrote: “We are counting on China to play a strong diplomatic role in bringing an end to Russia’s war against our country.”

Zelensky: “We are counting on China’s diplomatic role to bring an end to the war”

“I would like to thank Chinese leader Xi Jinping for his congratulations to Ukraine on the occasion of our most important national holiday,” wrote Ukrainian President Volodymyr Zelensky on X. “Independence is an unconditional value for Ukrainians, just as it is for all other sovereign nations. We appreciate the fact that, over the past 35 years, we have built relations with China based on mutual respect and full recognition of the values of our peoples. We look forward to further cooperation and to China playing a strong diplomatic role in bringing an end to Russia’s war against our country. Peace can be our shared goal.’

The CIA Director, John Ratcliffe, also arrived in the Russian capital yesterday for a series of meetings between security services. The purpose of the surprise visit was confirmed to the Washington Post by Kremlin spokesperson Dmitry Peskov.

The Vatican’s Foreign Minister, Paul Richard Gallagher, was also on a mission to Moscow, with the Holy See offering “diplomatic support” and “a space for dialogue”. The head of Vatican diplomacy emphasised that the Holy See remains committed to helping resolve humanitarian issues, such as the return of children to their families and the exchange of prisoners, which can “help to build a modicum of trust” between enemies. He also confirmed that Cardinal Matteo Zuppi, President of the Italian Bishops’ Conference, who has already visited Moscow twice, in 2023 and 2024, will continue his work on these issues.

Ukrainian forces have resumed attacks on Wildberries, Russia’s largest online retailer, in Kotovsk, in the Tambov region (western Russia). This was reported by the Kyiv Independent, citing the monitoring channel Exilenova Plus. The site was completely destroyed by fire. According to the Ukrainian General Staff, Ukrainian forces had already targeted Wildberries on 16 August, striking the company’s largest logistics centre in a large-scale attack in the Moscow region.

A man and a 14-year-old boy have died in a fire that broke out in a house in the Lipetsk region, caused by a Ukrainian drone attack, according to Governor Igor Artamonov. This has been reported by the Russian news agencies TASS and RIA Novosti. Artamonov added that two women were also injured and are receiving all the necessary care.

Later that afternoon, it emerged that nine people had been killed and six injured when a Ukrainian drone struck a civilian bus in the Russian-controlled Luhansk region. This was stated by the head of the pro-Russian administration, Leonid Pasechnik, as reported by the RIA Novosti news agency. Pasechnik himself clarified that the bus was travelling from Lysychansk to Stakhanov with 15 passengers on board.

Kuleba could be Ukraine’s new ambassador to the US

Former Ukrainian Foreign Minister Dmytro Kuleba could become Ukraine’s next ambassador to Washington, as Kyiv is seeking a new ambassador for one of its most important diplomatic posts, according to sources close to the matter who spoke to the Kyiv Independent.

The post has been vacant for several weeks, following Olha Stefanishyna’s resignation in the wake of an ongoing corruption investigation. Ukrainian President Volodymyr Zelensky had initially planned to send former Prime Minister Yuliia Svyrydenko to Washington, but she turned down the post, forcing the presidential administration to seek another candidate.

Kuleba has now emerged as a potential replacement, although it is not yet clear whether he is willing to accept the post.