# Russians, Ukrainians fight on outskirts of Sievierodonetsk, EU haggles over oil ban Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-05-30 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Russian forces clash with Ukrainian defenders in battle for Meta Description: Stay informed on the ongoing battle between Ukrainian and Russian forces in Sievierodonetsk, the focus of Moscow's offensive in Ukraine's Luhansk URL: https://financedigest.com/russians-ukrainians-fight-on-outskirts-of-sievierodonetsk-eu-haggles-over-oil-banhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-05-30t042938z1lynxmpei4t04qrtroptp4ukraine-crisis-donbas-1736815679173-compressed.jpg) By Pavel Polityuk and Natalia Zinets KYIV (Reuters) – Ukrainian and Russian forces battled on Monday on the outskirts of Sievierodonetsk, the last city still held by Kyiv in Ukraine’s Luhansk province and the focus of Moscow’s offensive in the country’s east. Russian shelling has reduced much of the city to ruins but the Ukrainian defence has slowed the wider Russian campaign across the Donbas region. Luhansk region governor Serhiy Gaidai said Russian troops had advanced into Sievierodonetsk’s southeastern and northeastern fringes. “They use the same tactics over and over again. They shell for several hours – for three, four, five hours – in a row and then attack,” Gaidai said. “Those who attack die. Then shelling and attack follow again, and so on until they break through somewhere.” He said that with temperatures rising, there was a “terrible smell of death” on the city outskirts. But [Ukrainian forces had driven the Russians](https://www.financedigest.com/ukrainian-volunteers-recount-three-weeks-in-russian-captivity-allege-beatings.html "Ukrainian volunteers recount three weeks in Russian captivity, allege beatings") out of the village of Toshkivka to the south, he said, potentially frustrating Moscow’s push to encircle the area. As the battlefield struggle ground on, EU countries meeting in Brussels to discuss more sanctions on Moscow failed to agree on a ban of [Russian oil](https://www.financedigest.com/oil-gains-as-russian-supply-cuts-temper-concerns-over-rate-hikes-high-stocks.html "Oil gains as Russian supply cuts temper concerns over rate hikes, high stocks") imports, despite last-minute haggling before a summit. The EU has rolled out five packages of sanctions against [Russia since its troops invaded Ukraine](https://www.financedigest.com/russia-promises-to-scale-down-operations-in-northern-ukraine.html "Russia promises to scale down operations in northern Ukraine") on Feb. 24 but an agreement on [oil sanctions](https://www.financedigest.com/oil-spills-and-near-misses-more-ghost-tankers-ship-sanctioned-fuel.html "Oil spills and near misses: more ghost tankers ship sanctioned fuel") has proved elusive because so many countries depend on Russian crude. There is no compromise for this moment at all,” said [Hungarian Prime Minister Viktor Orban](https://www.financedigest.com/orban-tightens-hold-over-telco-sector-as-vodafone-sells-hungarian-unit-2.html "Orban tightens hold over telco sector as Vodafone sells Hungarian unit"), whose country has been the main holdout for a deal. Russian President Vladimir Putin meanwhile said that Moscow was ready to facilitate grain exports from Ukrainian ports – a possibility that could alleviate a food crisis as the war and the West’s attempt to isolate [Russia have sent the price](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors") of grain and other commodities soaring. PRIORITY After failing to capture the capital Kyiv in March, [Russia said the focus of what it calls its “special military operation”](https://www.financedigest.com/mcdonalds-to-sell-russia-restaurants-to-local-operator-rebrand.html "McDonald’s to sell Russia restaurants to local operator, rebrand") was now to seize the entire Donbas region, consisting of two provinces, Luhansk and Donetsk, that Moscow claims on behalf of separatist proxies. [Russian Foreign Minister](https://www.financedigest.com/permitted-share-of-chinas-yuan-in-russian-wealth-fund-doubled-to-60-finance-minister.html "Permitted share of China’s yuan in Russian wealth fund doubled to 60% -Finance Minister") Sergei Lavrov said on Sunday the “liberation” of the Donbas was an “unconditional priority. Capturing Sievierodonetsk and its twin city Lysychansk on the opposite [bank of the Siverskyi Donets river would give Russia effective](https://www.financedigest.com/banking-turmoil-will-not-have-knock-on-effect-on-commodities-trafigura-cfo.html "Banking turmoil will not have knock-on effect on commodities -Trafigura CFO") control of Luhansk and would allow the Kremlin to declare some form of victory after more than three months of death and destruction. But by focusing its effort on a battle for the single small city, Russia might be leaving other territory [open to eventual](https://www.financedigest.com/asia-shares-bank-on-eventual-china-opening-oil-gains.html "Asia shares bank on eventual China opening; oil gains") Ukrainian counterstrikes. The [past few days](https://www.financedigest.com/groundhog-day-banks-continue-to-fall-into-the-traps-of-the-past.html "Groundhog Day: banks continue to fall into the traps of the past") have seen initial signs of a potential Ukrainian counter-offensive in the south, where Moscow is trying to consolidate its control of Kherson province. Kyiv [says its forces](https://www.financedigest.com/britain-says-it-is-committed-to-leading-a-nato-task-force-in-2024.html "Britain says it is committed to leading a NATO task force in 2024") pushed back Russian troops in recent days to defensive positions in three villages – Andriyivka, Lozove and Bilohorka – all on the south bank of the Inhulets River that forms the border of Kherson. A French journalist, Frederic Leclerc-Imhoff of television channel BFM, was killed near Sievierodonetsk on Monday when shelling hit the vehicle he was travelling in during an [evacuation of civilians](https://www.financedigest.com/civilians-from-mariupol-flee-azovstal-bunkers-in-u-n-led-evacuation.html "Civilians from Mariupol flee Azovstal bunkers in U.N.-led evacuation"). French [Foreign Minister](https://www.financedigest.com/not-business-as-usual-for-g20-foreign-ministers-meeting-in-bali.html "Not ‘business as usual’ for G20 foreign ministers meeting in Bali") Catherine Colonna, who was visiting Ukraine at the time, demanded an investigation. [PAYING WITH THEIR LIVES](https://www.financedigest.com/factbox-strikes-protests-in-europe-over-cost-of-living-and-pay-2.html "Factbox-Strikes, protests in Europe over cost of living and pay") As the EU leaders tried to thrash out agreement in Brussels, Latvian Prime Minister Krisjanis Karins told them they were forgetting the [big picture](https://www.financedigest.com/uk-retail-sales-jump-unexpectedly-but-big-picture-bleak.html "UK retail sales jump unexpectedly, but big picture bleak"). “It’s only money. The Ukrainians are [paying with their lives,”](https://www.financedigest.com/factbox-strikes-protests-in-europe-over-cost-of-living-and-pay-3.html "Factbox-Strikes, protests in Europe over cost of living and pay") he said. “We can and we must support them, if only out of self-interest, because only when Russia is defeated can we in Europe feel safe.” The failure to reach agreement has infuriated the Kyiv [government and caused frustration among its biggest supporters](https://www.financedigest.com/employers-and-the-government-should-support-employees-dependency-on-high-cost-credit-says-neyber.html "Employers and the Government should support employees’ dependency on high-cost credit, says Neyber") within the EU. Ahead of the summit, [German Economy Minister](https://www.financedigest.com/german-minister-says-on-right-track-to-solving-co2-emitting-car-row.html "German minister says ‘on right track’ to solving CO2-emitting car row") Robert Habeck expressed fears that EU unity was “starting to crumble. A draft of the summit conclusions showed that the leaders will agree in principle to an [oil embargo but they will leave](https://www.financedigest.com/uk-oil-gas-firms-to-leave-years-worth-of-output-in-ground-with-tax-hikes-report.html "UK oil, gas firms to leave year’s worth of output in ground with tax hikes-report") the practical details and hard decisions until later. According to the text seen by Reuters – which could still be changed – the leaders would [ban Russian oil](https://www.financedigest.com/explainer-why-malaysia-is-considering-a-ban-on-palm-oil-exports-to-the-european-union.html "Explainer-Why Malaysia is considering a ban on palm oil exports to the European Union") first by sea and at some point later through pipelines. The package has been blocked by landlocked Hungary’s refusal to agree to a ban on imports of [Russian oil](https://www.financedigest.com/oil-prices-rise-after-opec-keeps-output-steady-russian-price-cap-imposed.html "Oil prices rise after OPEC+ keeps output steady, Russian price cap imposed"), which it receives through the huge Soviet-era “Friendship” pipeline that runs across Ukraine. There is broad agreement on the rest of the package, including cutting Russia’s biggest bank, Sberbank, from the SWIFT messaging system, [banning Russian](https://www.financedigest.com/banning-russian-aluminium-would-create-uncertainty-about-lmes-role-rusal.html "Banning Russian aluminium would create uncertainty about LME’s role -Rusal") broadcasters from the EU, and adding people to a list whose assets are frozen. Estonian Prime Minister Kaja Kallas said it was more realistic to [expect an agreement on an oil](https://www.financedigest.com/oil-rises-on-saudi-oil-production-expectations.html "Oil rises on Saudi oil production expectations") embargo in a few weeks, hopefully at the EU’s next summit on June 23-24. In the Netherlands, GasTerra, which [buys and trades gas on behalf of the Dutch](https://www.financedigest.com/varo-energy-buys-80-of-dutch-biogas-firm-aims-to-double-capacity-by-2026.html "Varo Energy buys 80% of Dutch biogas firm; aims to double capacity by 2026") government, said it would no longer receive gas from Russia’s Gazprom from Tuesday after refusing to agree to Moscow’s demands for payment in roubles. GRAIN Western leaders have blamed Russia for holding the world to ransom by blockading Ukrainian ports and the United Nations, which says a global food [crisis is deepening](https://www.financedigest.com/europe-burns-cash-to-help-businesses-in-deepening-energy-crisis.html "Europe burns cash to help businesses in deepening energy crisis"), is trying to broker a deal to unblock Ukraine’s grain exports. Putin, in talks with Turkish President Tayyip Erdogan, said Russia was ready to facilitate the unhindered export of [grain from Ukrainian ports in coordination with Turkey](https://www.financedigest.com/turkey-says-five-more-grain-ships-leave-ukrainian-ports.html "Turkey says five more grain ships leave Ukrainian ports"), the Kremlin said. [“Emphasis was placed](https://www.financedigest.com/future-cheque-clearing-model-places-emphasis-on-speed-and-innovation.html "FUTURE CHEQUE CLEARING MODEL PLACES EMPHASIS ON SPEED AND INNOVATION") on ensuring safe navigation in the Black and Azov seas and eliminating the mine threat in their waters,” the Kremlin said of Putin’s call with Erdogan. Putin also said that if sanctions were lifted, then Russia could export significant volumes of fertilizers and agricultural products. [(Reporting by Reuters](https://www.financedigest.com/thomson-reuters-report-reveals-risk-compliance-staff-expect-to-see-significant-benefits-from-artificial-intelligence-ai-and-distributed-ledger-technologies.html "Thomson Reuters Report Reveals Risk & Compliance Staff Expect to See Significant Benefits from Artificial Intelligence (AI) and Distributed Ledger Technologies") bureaux; Writing by Peter Graff and Angus MacSwan, Editing by Kevin Liffey and Nick Macfie) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---