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A major Ukrainian drone attack on the Moscow region has brought the realities of the war closer to Russia’s capital, striking an oil refinery and causing visible disruption across parts of the city. Thick black smoke rose over the skyline following the attack, while reports indicated that residential buildings and commercial properties were also affected. Local authorities said an eight-year-old girl was killed in a fire linked to the strikes.

The attack is being described as one of the largest aerial assaults on the Moscow region since the start of Russia’s full-scale invasion of Ukraine. While many residents have grown accustomed to periodic drone attacks and security incidents, the strike underscored the increasing reach of the conflict into Russian territory. Some residents expressed shock at the scale of the attack, while others viewed it as part of a new normal created by the prolonged war.

Russian officials and state media sought to downplay the impact, emphasizing that Russia’s military operations in Ukraine remain more extensive and effective. However, repeated attacks on energy infrastructure, including oil facilities, have raised concerns about economic pressure, fuel shortages, and rising costs. Despite the growing frequency of such incidents, the Kremlin has signalled no change in its military strategy and remains committed to continuing the conflict.

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Ukrainian President Volodymyr Zelenskiy has accepted an offer from Brazilian President Luiz Inacio Lula da Silva to help advance diplomatic efforts aimed at ending the war between Ukraine and Russia. The agreement came during a meeting between the two leaders on the sidelines of the G7 Summit in France, where they discussed ways to revive stalled peace negotiations.

According to Ukrainian officials, Lula proposed several diplomatic initiatives, including increased engagement with the permanent members of the United Nations Security Council. Both leaders agreed to explore these ideas further and assess their effectiveness through future discussions and international contacts.

The renewed diplomatic push comes as previous U.S.-backed peace efforts have struggled to make progress, largely due to disagreements over territorial issues. Brazil has signalled its willingness to engage key global powers in search of a peaceful resolution, while Ukraine continues to seek broader international support to bring an end to the conflict.

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Pope Leo XIV criticized Europe’s rising military spending, calling it a betrayal of diplomacy and warning that increased rearmament only fuels insecurity and conflict. Speaking to students at Rome’s Sapienza University, the pontiff said governments should not describe expanding arms budgets as “defence spending” when such investments reduce funding for education and healthcare while benefiting powerful elites.

The pope’s remarks come as European military expenditure reached its highest level since the Cold War, driven by the Russia-Ukraine conflict and pressure from U.S. President Donald Trump for NATO members to increase defence budgets. Trump has pushed allies to raise military spending targets and recently prioritized U.S. weapons sales toward countries investing more heavily in defence.

Leo also warned against the growing use of artificial intelligence in warfare, pointing to conflicts in Ukraine, Gaza, Lebanon, and Iran as examples of technology making wars more inhumane. Urging students to reject divisive ideologies and nationalism, he appealed for global unity and encouraged young people to become “artisans of true peace.”

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At least nine people were killed and 28 injured in fresh Russian drone attacks across Ukraine following the expiration of a three-day US-brokered ceasefire. Ukrainian officials said the central Dnipropetrovsk region suffered the heaviest damage, with eight deaths reported, while another casualty occurred in the eastern Donetsk region. Authorities said a total of 14 Ukrainian regions came under attack during the latest wave of strikes.

Ukrainian President Volodymyr Zelensky said more than 100 Russian drones were active over the country on Wednesday morning and warned of continued attacks. Ukraine’s air force reported that Russia launched 139 drones within 24 hours, with 111 intercepted or destroyed, though several strikes hit civilian infrastructure, including railway facilities and residential areas. Regions including Kharkiv, Odesa, Kherson, Zaporizhzhia, and Poltava also reported injuries and property damage.

Meanwhile, Russia said Ukrainian drones targeted industrial and energy facilities overnight in multiple Russian regions, including Astrakhan and Krasnodar. Russian officials claimed hundreds of Ukrainian drones were intercepted and confirmed damage to a gas processing plant and other industrial sites, though no casualties were reported. The renewed attacks highlight escalating tensions after the temporary ceasefire collapsed amid mutual accusations of violations from both sides.

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Ukraine and Russia exchanged 300 prisoners of war each on Friday during the second day of a two-day swap, with several of the released soldiers having been held since the early stages of the war in 2022. The exchange followed Thursday’s swap of 200 POWs from each side, marking the second such prisoner exchange between the two countries in 2026.

Ukrainian President Volodymyr Zelenskyy said the returning soldiers had fought in key war zones including Donetsk, Luhansk, Kharkiv, Zaporizhzhia, Kherson and Mariupol, with many spending more than a year in captivity. He also confirmed that two Ukrainian civilians were returned as part of the exchange.

Russia’s defence ministry said the United States and the United Arab Emirates helped mediate the swap. The exchange came after recent peace talks between Kyiv and Moscow, though a planned new round of negotiations was postponed amid escalating tensions in the Middle East.

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A 23-year-old police officer, identified as Viktoria Shpylka, was killed and 25 others were injured after two homemade explosive devices detonated in the western Ukrainian city of Lviv. According to the National Police of Ukraine, the explosives were hidden in waste bins and exploded shortly after officers responded to a reported overnight break-in at a shop in the city centre. Several officers were among the injured, with some reported to be in serious condition.

Ukrainian authorities described the incident as a terrorist attack and quickly detained a 33-year-old suspect from the Rivne region. President Volodymyr Zelensky confirmed the arrest and said investigators believe the suspect acted on instructions from Russian special services. Officials are continuing efforts to identify possible accomplices, while prosecutors have opened a terrorism investigation into the deadly attack.

The bombing comes amid ongoing conflict between Ukraine and Russia, as the country faces intensified missile and drone strikes ahead of the fourth anniversary of Russia’s full-scale invasion ordered by Vladimir Putin. Ukrainian officials reported dozens of aerial attacks targeting infrastructure and residential areas, highlighting continued security threats as Russia maintains control over parts of Ukrainian territory, including the annexed region of Crimea.

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Nvidia is set to release its quarterly earnings next week, a highly anticipated event as investors assess the strength of artificial intelligence-driven growth and its impact on global markets. The chipmaker, currently the world’s most valuable company, has seen its shares surge since the rise of AI technologies, but momentum has slowed in 2026 amid concerns about returns on massive AI investments. Investors will also monitor results from major software firms like Salesforce and Intuit, as AI disruptions reshape the broader technology sector.

Beyond corporate earnings, geopolitical tensions continue to influence market sentiment, particularly as the fourth anniversary of Russia’s invasion of Ukraine approaches. Ongoing conflict, uncertainty over ceasefire efforts, and rising tensions involving Iran have contributed to volatility in oil prices, defence stocks, and gold. Global investors are increasingly concerned about overlapping geopolitical risks, including conflicts in multiple regions and their potential economic consequences.

At the same time, key economic data and political developments are expected to shape central bank policies and investor outlooks worldwide. Inflation data in Australia and Tokyo will be closely watched for clues on future interest rate hikes, while leadership uncertainty in the European Central Bank and political pressure on UK Prime Minister Keir Starmer could influence bond markets and currencies. Together, corporate earnings, economic indicators, and political events are set to play a decisive role in shaping global financial markets in the coming weeks.

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U.S. Ambassador to NATO Matthew Whitaker has cast doubt on Russia’s claim that Ukraine carried out a drone attack on President Vladimir Putin’s residence, saying it remains unclear whether such an incident even occurred. Speaking in an interview, Whitaker said he was waiting for confirmation from U.S. and allied intelligence services, noting that Ukraine has firmly denied any involvement in the alleged attack.

Russia alleged that Ukraine launched 91 long-range drones at a presidential residence in the Novgorod region and warned that it would retaliate and harden its negotiating position in peace talks. Ukraine dismissed the accusation as false and said Moscow has produced no evidence to support its claims. Ukrainian officials described the allegation as an attempt to justify further Russian attacks and avoid meaningful steps toward ending the war.

U.S. President Donald Trump said Russian President Vladimir Putin raised the issue during a phone call, adding that he was angry about the reported incident but acknowledged that the facts were still being verified. The White House and U.S. intelligence agencies declined to comment further. Whitaker stressed that any conclusions would depend on intelligence assessments, as diplomatic efforts continue amid signs that Washington and Kyiv may be close to a broader peace agreement despite unresolved territorial disputes.

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Pope Leo has expressed deep sadness over Russia’s refusal to agree to a Christmas ceasefire in its nearly four-year-long war with Ukraine. Speaking to journalists outside his residence in Castel Gandolfo, Italy, the pontiff said the decision was particularly disheartening given the symbolic importance of Christmas as a time for peace and reflection.

The Pope appealed once again to global leaders and “people of good will” to respect at least Christmas Day as a pause in hostilities. He urged all sides involved in conflicts to consider a temporary ceasefire, even if only for 24 hours, as a gesture of humanity and compassion during the Christian holy period.

Pope Leo, the first pontiff from the United States, said he hoped his renewed appeal would be heard and lead to a brief moment of peace, not only in Ukraine but across the world. His comments come amid continued fighting and international calls for restraint during the festive season.

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The Kremlin said on Sunday that recent changes proposed by Europe and Ukraine to U.S.-drafted plans aimed at ending the war in Ukraine have not improved the prospects for peace. Russian President Vladimir Putin’s top foreign policy aide, Yuri Ushakov, said Moscow remains unconvinced that the revised proposals would help achieve a lasting settlement, reflecting Russia’s continued scepticism toward European and Ukrainian involvement in shaping the peace framework.

The original U.S. proposals, which were leaked last month, sparked concern among European and Ukrainian leaders who feared they were overly favourable to Russia and could pressure Kyiv into excessive concessions. In response, European and Ukrainian negotiators have held talks with envoys from U.S. President Donald Trump’s administration to introduce their own amendments, though the precise details of the updated proposals have not been made public. Ushakov said he had not yet seen the full documents but was confident the changes would not enhance the chances of long-term peace.

His remarks came after Putin’s special envoy Kirill Dmitriev held talks in Florida with U.S. special envoy Steve Witkoff and Trump’s son-in-law Jared Kushner. Dmitriev is expected to report back to Putin on the discussions, after which Moscow will decide its next steps in contacts with Washington. The talks underscore the high stakes surrounding whether the war—the deadliest in Europe since World War Two—can be brought to an end, the future of Ukraine, and whether any U.S.-brokered deal would be durable.

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