Russia's war on Ukraine latest: Putin responds to crude oil price cap

* Fighting was particularly intense around the strategic eastern city of Bakhmut in Donetsk province and Svatove, further north in Luhansk province, Britain's defence ministry said. * In his nightly video message on Monday, Ukrainian President Volodymyr Zelenskiy called the situation along the eastern frontline in Donbas "difficult and painful".

Russia announced it would ban oil sales to countries that abide by a price cap imposed this month by the West, giving its long-awaited response to the most dramatic step taken so far to limit Moscow's ability to raise funds for its war in Ukraine. FIGHTING

* Over the past 24 hours, Ukrainian forces have repelled Russian attacks in the areas of two settlements in the Luhansk region and six in the Donetsk region, the General Staff of Ukraine's Armed Forces said on Tuesday. * Fighting was particularly intense around the strategic eastern city of Bakhmut in Donetsk province and Svatove, further north in Luhansk province, Britain's defence ministry said.

* In his nightly video message on Monday, Ukrainian President Volodymyr Zelenskiy called the situation along the eastern frontline in Donbas "difficult and painful". * A drone believed to be Ukrainian penetrated hundreds of kilometres through Russian airspace on Monday, causing a deadly explosion at the main base for Moscow's strategic bombers in the latest attack to expose gaps in its air defences.

* Moscow said it had shot the drone down causing it to crash at the Engels air base, where three service members were killed. * A Ukrainian Air Force spokesperson said Russia had transferred many planes from Engels to other airfields and that overnight enemy aviation activity had "significantly decreased".

Reuters could not independently verify battlefield reports. DIPLOMACY

* Putin said he was open to negotiations and he blamed Ukraine and its Western allies for failing to engage in talks. * The United States and its NATO allies together with Ukraine want to defeat Russia "on the battlefield" in order to destroy it, Russia's Foreign Minister Sergei Lavrov told the state TASS agency in remarks published on Monday.

* Italian Prime Minister Giorgia Meloni on Tuesday reaffirmed her government's "full support" for Ukraine in a call with President Volodymyr Zelenskiy, her office said in a statement. (Compiled by Alexandra Hudson and Nick Macfie)