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Moscow's military "tasks" in Ukraine now go beyond the eastern Donbas region, Russian Foreign Minister Sergei Lavrov said on Wednesday, as the Kremlin's forces shelled eastern and southern Ukraine.

Lavrov also told state news agency RIA Novosti that Russia's objectives will expand still further if the West keeps supplying Kyiv with long-range weapons such as the U.S.-made High Mobility Artillery Rocket Systems (HIMARS).

His comments, the clearest acknowledgment yet that Russia's war goals have expanded over the five months of war, came after Washington said it saw signs Moscow was preparing to formally annex territory it has seized in its neighbour.

European Commission President Ursula von der Leyen meanwhile accused Russia of "blackmailing" the European Union over energy, as she unveiled a plan to slash gas demand in the bloc ahead of a feared cut-off of deliveries by Russia as winter approaches.

Russian President Vladimir Putin had earlier warned that gas supplies sent to Europe via the huge Nord Stream 1 pipeline, which has been closed for 10 days for maintenance, were at risk of being reduced further.

Lavrov is the most senior figure to speak openly of Russia's war goals in territorial terms, nearly five months after Putin launched his Feb. 24 invasion with a denial that Russia intended to occupy its neighbour.

Then, Putin said his aim was to demilitarise and "denazify" Ukraine - a statement dismissed by Kyiv and the West as a pretext for an imperial-style war of expansion.

Lavrov told RIA Novosti geographical realities had changed since Russian and Ukrainian negotiators held peace talks in Turkey in late March that failed to produce any breakthrough.

At that time, he said, the focus was on the Donetsk and Luhansk People's Republics (DPR and LPR), self-styled Russian-backed breakaway entities in eastern Ukraine from which Moscow has said it aims to drive out Ukrainian government forces.

"Now the geography is different, it's far from being just the DPR and LPR, it's also Kherson and Zaporizhzhia regions and a number of other territories," he said, referring to territories well beyond the Donbas that Russian forces have wholly or partly seized.

"This process is continuing logically and persistently," Lavrov said, adding that Russia might need to push even deeper.

After being beaten back in an initial attempt to take the Ukrainian capital Kyiv, Russia's defence ministry said on March 25 that the first phase of its "special military operation" was complete and it would now focus on "achieving the main goal, the liberation of Donbas".

Nearly four months later, it has taken Luhansk, one of two regions that make up the Donbas, but remains far from capturing all of the other, Donetsk. In the past few weeks it has ramped up missile strikes on cities across Ukraine.

On Wednesday, the Ukrainian military and politicians reported heavy and sometimes fatal Russian shelling amid what they said were largely unsuccessful attempts by Russian ground forces to advance.

Citing U.S. intelligence, White House national security spokesman John Kirby had earlier accused Russia of laying the groundwork to annex Ukrainian territory it has seized since the start of the war, an assertion the Russian embassy in Washington said mischaracterised what Moscow was trying to do.

Russia's invasion has killed thousands, displaced millions and flattened cities, particularly in Russian-speaking areas in the east and southeast of Ukraine. It has also raised global energy and food prices and raised fears of famine in poorer countries as Ukraine and Russia are both major grain producers.

There have been more than 9.5 million border crossings from Ukraine since Feb. 24, the UN Refugee Agency reported on Wednesday.

EUROPE GETS READYIn Washington, U.S. Defense Secretary Lloyd Austin said the United States will send four more HIMARS artillery systems to Ukraine, in its latest military package to bolster Kyiv. 

With uncertainty swirling over the planned restart on Thursday of Nord Stream 1, the European Union proposed its 27 member countries cut gas demand by 15% from now until spring.

Warning that without deep cuts members could struggle for fuel during winter if Russia cuts off supply in retaliation for the bloc's support of Ukraine, the executive Commission said that target could be made binding in an emergency.

"Russia is blackmailing us. Russia is using energy as a weapon," Commission President Ursula von der Leyen said, describing a full cut-off of Russian gas flows as "a likely scenario" for which "Europe needs to be ready".

Sources have told Reuters that Nord Stream 1, the single largest link for Russian gas supplies to Europe, is expected to restart as scheduled on Thursday after 10 days of annual maintenance work, but at reduced capacity.

Speaking after a visit to Tehran, Putin said the capacity of Nord Stream 1 could be reduced due to problems with other pumping units, one of which would need to be sent for maintenance on July 26.

He said Russian energy giant Gazprom (GAZP.MM) was ready to fulfil its obligations on gas exports.

Gazprom cut exports through the route to 40% capacity last month, citing delays in the return of a turbine Siemens Energy was servicing in Canada, which had initially banned the equipment's return, citing sanctions.

Putin said on Wednesday it was not clear in what condition the turbine would be returned after repairs in Canada and that there was a risk that the equipment could be switched off halting the flow of gas through Nord Stream.

Russia, the world's largest gas exporter and second-largest crude oil supplier, has denied Western accusations of using its energy supplies as a tool of coercion, saying it has been a reliable energy supplier.

Ukraine's western creditor governments meanwhile urged bondholders to accept Kyiv's request for a two-year delay on its debt payments and said they would suspend payments owed to them. (Reuters)

U.S. President Joe Biden will unveil new executive steps to address climate in a visit to Massachusetts on Wednesday that are expected to fall short of declaring the federal emergency many Democrats had urged.

Democratic lawmakers and environmental groups have been calling for the White House to take aggressive measures on climate change after conservative Democratic Senator Joe Manchin said last week he was not ready to support key climate provisions in Congress, a critical loss in the evenly divided Senate.

In a visit to Somerset, Massachusetts, Biden will stress that climate change is "an existential threat to our nation and to the world" and will make clear that "since Congress is not going to act on this emergency, then he will," said a White House official.

The steps include providing more funding for a program that helps local communities expand flood control, shore up utilities, and retrofit buildings, as well as another that helps low-income families pay for heating and cooling costs, according to a White House official.

Biden will also announce new support for the domestic offshore wind industry, the official said. In Massachusetts, the president will visit a former coal-fired plant that is playing a role in supporting the state's offshore wind industry as a manufacturing hub for undersea cables. That illustrates the switch from fossil fuels to renewable energy that Biden has been promoting as critical to reducing climate emissions.

Biden has been under pressure to declare a climate emergency, which would enable the use of the Defense Production Act to ramp up production of a wide range of renewable energy products and systems.

Senator Jeff Merkley and eight other Democrats sent a letter to Biden on Wednesday urging him to declare a climate emergency and use aggressive executive actions to limit emissions from fossil fuels produced on public lands and waters and maximize use of electric vehicles.

But the president is not expected to declare a climate emergency on Wednesday even as a heat wave swept across the country and threatened millions of Americans as well as the power grid.

Biden promised tough action on climate change in his presidential campaign and pledged in international climate negotiations to cut climate pollution by 50% by 2030 and reach 100% clean electricity by 2035.

But that climate agenda has been derailed by several major setbacks, including Congress failing to pass crucial climate and clean energy measures in a federal budget bill, record-setting gasoline prices, and Russia's invasion of Ukraine disrupting global energy markets.

A Supreme Court ruling last month limiting the federal government's authority to issue sweeping regulations to reduce carbon emissions from power plants also is undermining Biden's climate plans. (Reuters)

Sri Lanka's acting president, Ranil Wickremesinghe, won a vote in parliament on Wednesday to be the next president until 2024, taking over from former president Gotabaya Rajapaksa who resigned after fleeing the country last week.

Hundreds of thousands of protesters had flooded the streets of the island nation to demand Rajapaksa's resignation over his government's handling of a crippling economic crisis.

Here are some reactions to the victory.

MAIN OPPOSITION LEADER SAJITH PREMADASA:

"We now have to consider how we ended up here, in the middle of a presidential term, to elect a new president.

"It was because of a massive public wave against an elected president. This is now an outdated parliament, with a mandate given for an ousted president.

"We must work according to the constitution. The reality is people are struggling without fuel, food and basics.

"We must have a national policy with clear timelines to put the economy on track and save this country. As the opposition we will give our utmost support for this."

PROTESTER BUWANAKA PERERA:

"The occupy movement shall continue, the struggle shall continue. The reason why people came out against Gota (Rajapaksa) was not a personal grudge.

"It was protesting ideals and values he held. We see those same values, corruption and oppression in Ranil. We will continue the protest until Ranil goes home.

"It might take us a week, a month, two months, or 98 days. But we know people in Sri Lanka are not going to stand for it. We will get back on the streets and continue."

PROTEST ORGANISER CHAMEERA DEDDUWAGE:

"What does it mean for the struggle? For one thing, it means that the struggle will have to be satisfied with its primary demand, i.e. resignation of Gotabaya Rajapaksa.

"It also means that the struggle, in one form or another, will have to find new ways to win our remaining demands.

"Unlike Gotabaya Rajapaksa, Ranil is not a populist: he's known to be a ruthless pragmatist. I think the immediate concern is the possible prosecution of leading members of the struggle."

OPPOSITION LAWMAKER ERAN WICKRAMARATNE ON TWITTER:

"I hope the outcome would facilitate immediate political stability that is an imperative pre-requisite to stabilise the economy, so a general election can be called to restore people's mandate thereafter."

LAWMAKER AND PRESIDENTIAL RIVAL DULLAS ALAHAPPERUMA:

"I accept the decision of parliament.

"My effort was to support consensus-based policy-making to provide solutions to a deeply suffering population.

"I believe the space for that still exists and I will continue to work to strengthen that effort and work for the people.

"This is simply another milestone in my career. I hope that at least now you will cultivate the mentality to listen to the suffering masses."

PROTESTER DAMITHA ABEYRATHNE:

"We're shocked. He (Ranil) is a person handling things in a very cunning way. He will start controlling us in a different way. As protesters we will start our struggle again."

PROTESTER KASUMI RANASINGHE ARACHCHIGE:

"I am not surprised, but still disappointed at how corrupt and unfair the system is. We won't back down, we won't settle for anything less.

"We will fight for what we deserve. People deserve fuel, transportation, we deserve anything citizens need. Until we see no one in Sri Lanka is struggling, the protest continues."

STATEMENT OF INDIAN EMBASSY IN SRI LANKA AFTER RESULT:

"As a close friend and neighbour of Sri Lanka and a fellow democracy, we will continue to be supportive of the quest of the people of Sri Lanka for stability and economic recovery, through democratic means and values, established democratic institutions and constitutional framework."

CHARU CHANANA, MARKET STRATEGIST, SAXO CAPITAL MARKETS:

"The market reaction ... would likely be cautious because the consumer sentiment has been so strongly negative that any potential leader is unlikely to be able to turn that around very quickly.

"So it will have to be some credible policy decisions, which are supportive of consumers and the pain consumers have been going through, and that can bring the economy out of this mess at the same time.

"That’s a tough thing to handle, you can't have a huge amount of subsidy or support for consumers and still manage to bring the economy out of those debt and fiscal issues, but to be able to strike the right balance between these two is going to be key for Wickremesinghe.

"And until we see that, markets are going to be rather cautious."

"I do think we are past the worst because we have leaders stepping in now, but also globally, there will be more aid for Sri Lanka, including the IMF stepping up their responses.

" ... And with oil prices and food prices off their highs, it is a situation where Sri Lanka might be able to meet its debt obligations with all the help it gets going forward.

"But it certainly is a big flag for those countries that are highly dependent on debt and their currencies are depreciating.

"That's something emerging markets, especially frontier markets, need to be very watchful about."

FORMER CRICKETER SANATH JAYASURIYA ON TWITTER:

"The 225 members of parliament have spoken. Best wishes to the new president. It is now up to him to deliver the change the majority of people want." (Reuters)

Russia held its spot as China's top oil supplier for a second month in June as Chinese buyers cashed in on lower-priced supplies, slashing more costly shipments from Saudi Arabia, data showed on Wednesday.

Imports of Russian oil, including supplies pumped via the East Siberia Pacific Ocean pipeline and seaborne shipments from Russia's European and Far Eastern ports, totalled 7.29 million tonnes, up nearly 10% from a year ago, according to data from the Chinese General Administration of Customs.

Still, Russian supplies in June, equivalent to about 1.77 million barrels per day (bpd), were below May's record of close to 2 million bpd, a level analysts had expected to be maintained.

China imported 5.06 million tonnes from Saudi Arabia, or 1.23 million bpd, down from 1.84 million bpd in May and 30% below the level in June last year.

Year-to-date imports from Russia totalled 41.3 million tonnes (1.67 million bpd), up 4% on the year but still trailing behind Saudi Arabia, which supplied 43.3 million tonnes (1.75 million bpd), a volume 1% below year-ago level.

China's total crude oil imports sank in June to near a four-year low as rigid lockdowns to contain the spread of coronavirus reduced fuel demand. The rise in imports from Russia also displaced supplies from Angola and Brazil.

The Customs data showed China imported 260,000 tonnes of Iranian crude oil last month, its fourth shipment of Iran oil since last December, confirming an earlier Reuters report.

Despite U.S. sanctions on Iran, China has kept taking Iranian oil, usually passed off as supplies from other countries. These supplies, roughly 7% of China's total crude oil imports, are facing competition from the growing Russian flows.

Customs reported zero imports from Venezuela. State oil firms have shunned purchases since late 2019 for fear of falling foul of secondary U.S. sanctions.

Imports from Malaysia, often used as a transfer point in the past two years for oil originating from Iran and Venezuela, soared 126% year-on-year to 2.65 million tonnes.

Separately, data also showed China's imports of Russian liquefied natural gas (LNG) totalled 520,530 tonnes, the second highest monthly volume since at least the start of 2021.

Russian LNG imports for the first half of 2022 - mostly from the Sakhalin-2 project in the Far East and Yamal LNG in Russian Arctic - were up almost 30% on the year to 2.36 million tonnes, the data showed.

This is against a 21% year-on-year fall in the nation's total LNG imports during the same period. (Reuters)