The US Treasury Secretary, Scott Bessent, has told a Russian counterpart that no economic relief for Russia is possible until its war in Ukraine ends. Bessent met with Anton Siluanov, the Russian finance minister, at a G20 finance leaders’ meeting in Asheville, North Carolina, where Moscow’s representatives were a surprise and unwelcome presence.
A source told Reuters that Bessent said no agreements of any kind were possible until the war ended. The Russian finance minister’s first in-person G20 appearance since Russia invaded Ukraine has irritated European officials who are working on more sanctions against Russia.
UK Tightens Sanctions Enforcement
Britain on Monday ramped up pressure on shadow financial systems underpinning Russia’s war economy, doubling penalties for sanctions breaches, the UK treasury said. Fines would increase from 50% of the value of a sanctions breach to 100%, said John Healey, the UK finance minister.
The UK’s National Crime Agency issued a nationwide alert targeting the Kremlin-backed A7 network, which the British government has said was used to route funds and evade restrictions.
Overnight Strikes and Drone Attacks
Explosions were reported early on Tuesday morning in Kyiv, the Ukrainian capital. Four people were injured, including two children, and people should seek shelter, local authorities said. Air raid alerts covered most of Ukraine’s territory in the early hours of Tuesday.
AFP said its correspondents in Kyiv saw flashes and heard loud explosions moments after Ukraine’s air force warned of inbound high-speed targets. It comes as Kyiv endures hours of daytime air raids and air raid warnings, Dan Sabbagh writes from the Ukrainian capital.
Russia's Jet-Powered Drones
Russia fired 800 jet-powered drones into Ukraine in the previous four days. Past versions of the Iranian-style Shahed drones were propeller-driven. In response, Ukrainian engineers are racing to make faster interceptor drones.
“Four companies have developed the relevant interceptor drones, and one company has the most successful technology,” said Volodymyr Zelenskyy, Ukraine’s president.
Nato fighter planes were scrambled, Latvia’s military said early on Tuesday, after a warning of a possible air threat near the town of Ludza, close to the Russian border. Separately, Russia’s north-western Leningrad region issued a drone threat alert, according to the governor, Alexander Drozdenko.
Other Developments
Ukrainian drones have hit another Wildberries warehouse, this time in Ekaterinburg, Russia. The Russian local governor confirmed the strike on Monday, claiming that drones and debris also struck residential buildings. There were no casualties, he said.
The suspected Russian “shadow fleet” oil tanker MV Sun was boarded by the European Union’s naval mission in the Mediterranean on Sunday, said Kaja Kallas, the EU’s foreign policy chief. “The oil tanker MV Sun, suspected of sailing under false flag in breach of international maritime law, was boarded on August 30 in the Mediterranean by Operation Eunavfor Med Irini forces for flag verification,” Kallas posted.
The war in Ukraine must end for humanity’s sake, India’s prime minister, Narendra Modi, told Vladimir Putin as the two met in Kyrgyzstan. “Every day that the war continues, humanity is, in effect, set back a step, whilst every step towards peace gives all of humanity real hope for peace,” Modi said. “We need to move from endless war to an end to the war, to a cessation of hostilities. And we will need to move precisely in this direction.”
Despite international condemnation and sanctions, India, along with China, has remained one of the biggest buyers of Russian oil, which has helped Moscow fund its war against Ukraine. Modi and the Russian president met on the sidelines of the Shanghai Cooperation Organization summit where Putin and his Chinese counterpart, Xi Jinping, also met and briefly discussed the Ukraine war, the Kremlin said.
Indonesia said it was investigating claims that several citizens had joined the Russian military to fight in the war in Ukraine. Information from Ukrainian authorities was being checked, the foreign ministry in Jakarta said. It did not say how many Indonesians were under suspicion, but they risk losing their citizenship. “If the involvement of Indonesian citizens in the armed forces of a foreign country is verified, it is an individual act and does not represent the policy or position of the Indonesian government,” the foreign ministry said.
Volodymyr Zelenskyy said on Monday that he held a “detailed and constructive” call with US envoys Steve Witkoff and Jared Kushner. Both sides were working to finalise dates for their visit to Ukraine. “I also informed them about the situation on the battlefield, where Russia’s gains have been sparse and at the cost of huge losses, and about the strikes,” Zelenskyy said. “We shall see what the US president’s representatives manage to achieve. September could bring about a lot of changes. And we, together with our partners, must do everything we can to protect people.”
Polish prosecutors are investigating a fire at a drone factory as an act of terrorism arranged by a foreign intelligence service. The fire at the WB Electronics factory in the central city of Skarzysko-Kamienna was started deliberately using a “device containing flammable materials”, a prosecution statement said. Several countries in eastern Europe have said they have been the target of spying and sabotage as part of a “hybrid war” by Russia.
Ukraine’s top sanctions official, Vladyslav Vlasiuk, will visit Washington this week to urge members of the US House of Representatives to approve sweeping Russia sanctions legislation. It would enable the president to sanction Russian officials and authorise tariffs on China, India and other countries for buying Russian oil and gas. Some US lawmakers and industries are wary, though, that Donald Trump might abuse the powers that the legislation contains. The House has not yet scheduled a vote on the legislation.
