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Kaja Kallas: Ukrainian Drone Strikes Spark 'Panic' in Kremlin as EU Readies New Sanctions

Kaja Kallas: Ukrainian Drone Strikes Spark 'Panic' in Kremlin as EU Readies New Sanctions
EU foreign policy chief Kaja Kallas told AFP Russia was 'losing money, men, and momentum' in Ukraine (Nicolas TUCAT)(Nicolas TUCAT/AFP/AFP)

Kaja Kallas said Ukrainian drone strikes deep inside Russia have sown "panic" in the Kremlin and triggered a sharper Russian response. Drones recently hit energy and military targets in Saint Petersburg; Kyiv says it is targeting oil facilities that finance Moscow's war. The EU is preparing targeted sanctions to curb Russia's military financing and increase support for Ukraine, while calling on Moscow to engage in negotiations.

EU foreign policy chief Kaja Kallas told AFP that Ukrainian drone strikes reaching deep into Russian territory have caused "panic" within the Kremlin, prompting Moscow to escalate attacks on Ukraine.

On Wednesday, Ukrainian drones struck energy and military sites in Saint Petersburg as officials gathered for President Vladimir Putin's flagship economic forum. Kyiv says such strikes — including long-range attacks on oil infrastructure — are aimed at disrupting revenues that fund Russia's war effort.

"It clearly shows also panic on the Russian side — why they are increasing the terrorist attacks that they're doing in Ukraine is because they don't know what to do with these things," Kallas told AFP.

Ukrainian President Volodymyr Zelensky described the strikes as "fair" retaliation for Russia's bombardment of Ukrainian cities and warned that more operations could follow. Kallas noted that Kyiv has stepped up deep strikes specifically against oil facilities because fuel revenues help sustain Russia's military operations.

At the same time, Kallas said Russia appears to be losing resources, personnel and strategic momentum, and she accused Moscow of increasing attacks on civilian targets to sow fear. Russian forces have responded with powerful missile and drone strikes inside Ukraine in recent days; officials reported at least 23 people killed in attacks on Tuesday.

"He's clearly terrorising more to create fear, and because he's on a back foot in the battlefield," Kallas said, adding that she doubted such attacks would break Ukrainian resilience.

EU Response: Targeted Sanctions and Support for Ukraine

The European Union is preparing a new sanctions package aimed at intensifying pressure on Moscow. Kallas said the measures would focus on the military-industrial complex and key financial institutions to limit Russia's ability to raise capital for the war, while also targeting oil revenues.

"We have a very clear goal in mind: targeting the military industry, targeting the financial institutions, so that they can't raise capital to finance this war," she said. Kallas also urged increased support for Ukraine so it can defend itself against "atrocious" attacks.

Kallas reiterated that the EU cannot act as a neutral mediator between Kyiv and Moscow because of its explicit support for Ukraine. She said Washington's attention has been partly diverted by the conflict in the Middle East and tensions in the Strait of Hormuz, but emphasised that a key barrier to negotiations remains a lack of willingness on the Russian side to engage.

"That's the most important: how we can push them to talk to the Ukrainians, so that they also make concessions that make Europe secure," she said.

As the EU weighs further measures, officials say the aim is to squeeze Russia's war financing while bolstering Kyiv's ability to resist and to create conditions more conducive to negotiations.

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