Russian diesel deal puts Trump at odds with allies

A US deal to buy Russian diesel has sparked fresh tensions between Washington, Kyiv and European allies, with Ukrainian President Volodymyr Zelenskiy warning that the agreement would channel more money into Russia's war effort, while French President Emmanuel Macron said the move sent a negative signal.

Macron also criticised the agreement, saying it was "not good for anyone" and created division, doubt and defiance. And speaking at an EU summit in Brussels, Zelenskiy said the agreement would allow cash to flow back into Russia and help finance its invasion of Ukraine. "This diesel deal will never be enough to offset the impact of the Strait of Hormuz on global markets. But it will put more money straight into Putin's pocket to fund this war," Zelenskiy said, a day after the Kremlin said Russian diesel had begun reaching global markets following the deal with US President Donald Trump.

European Union leaders rallied behind Zelenskiy, as Ukraine faces continued Russian attacks and uncertainty over future US military and intelligence support. Russian drone strikes on Kharkiv killed three people, while attacks elsewhere left hundreds of thousands without electricity, according to the report.

Estonian Prime Minister Kristen Michal said the EU would probably need to provide Ukraine with a new loan to cover its budget shortfall next year, as European leaders debated how to sustain financial and military support for Kyiv.

The dispute comes as the war continues to strain relations between Trump and Zelenskiy. Trump has criticised Ukrainian attacks on Russian oil refineries, calling the latest strike "a disgrace", and blamed such attacks for pushing up energy prices ahead of US midterm elections in November.

Zelenskiy also accused Russian President Vladimir Putin of having no genuine interest in peace negotiations, describing Moscow's approach as a "parody" of a desire to end the war.

Putin, meanwhile, said Russia was establishing a security zone inside Ukraine along the border, which he declared would not be open to negotiation. Kremlin spokesman Dmitry Peskov said the planned zone stretched 660 kilometres, with Russia controlling about 70% of it.