Ukraine and Russia: What you need to know right now

* U.S. President Joe Biden announced a new $700 million weapons package for Ukraine, including rocket systems capable of pinpoint strikes at targets as far away as 80 km (50 miles). * Washington plans to sell Ukraine four drones that can be armed with Hellfire missiles, sources said. ECONOMY * Washington issued new sanctions, with targets including several yachts linked to Russian President Vladimir Putin and an oligarch who heads a major steel producer.

Russian forces tightened their grip on an industrial Ukrainian city as part of their drive to control the eastern Donbas region and targeted rail links used to ferry in weapons from Kyiv's Western allies as the war nears its 100th day on Friday. FIGHTING AND WEAPONS

* Russian forces in Ukraine's east are attempting to advance south towards the key Ukrainian-held cities of Kramatorsk and Sloviansk, Donetsk region governor said. * Civilians are sheltering from Russian shelling under a chemical plant in Sievierodonetsk and authorities fear it may still have stocks of dangerous materials, the regional governor told Reuters.

* Russian forces control 70% of Sievierodonetsk, with 10-15% a "grey zone" and the rest in Ukrainian hands, Luhansk governor Serhiy Gaidai said. * U.S. President Joe Biden announced a new $700 million weapons package for Ukraine, including rocket systems capable of pinpoint strikes at targets as far away as 80 km (50 miles).

* Washington plans to sell Ukraine four drones that can be armed with Hellfire missiles, sources said. The Kremlin said they would have no impact on its military operation. ECONOMY

* Washington issued new sanctions, with targets including several yachts linked to Russian President Vladimir Putin and an oligarch who heads a major steel producer. * Russia described as "self-destructive" European Union's decision to largely phase out imports of Russian oil.

* Ukraine's 2022 wheat harvest is likely to drop to 19.2 million tonnes from a record 33 million tonnes in 2021, Ukrainian grain traders' union UGA said. * Ukraine hoisted its main interest rate to 25% from 10% to tackle double-digit inflation and protect the hryvnia as some business activity returns.

DIPLOMACY * European Union diplomats gave final approval to the bloc's sixth round of sanctions on Russia, one told Reuters.

* President Volodymyr Zelenskiy called on the West to step up its weapons supplies. * Russia said on Wednesday it did not rule out a meeting between Putin and Zelenskiy.

* Ukraine is working with international partners to create a U.N-backed mission to restore Black Sea shipping routes, its foreign ministry said. * Kremlin says Russia has no plan to close "the window" to Europe which Tsar Peter the Great sought to open 300 years ago despite heavy sanctions.

QUOTES "Ukraine needs weapons to liberate Ukrainian territory that Russia has temporarily occupied. We are not fighting on Russian territory" said Andriy Yermak, Zelenskiy's chief of staff.

COMING UP * Biden and his national security adviser will meet NATO Secretary-General Stoltenberg in Washington on Thursday, the White House said. (Compiled by Tomasz Janowski)