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Leaders of the Group of Seven major democracies, meeting at a German alpine resort, said they would keep sanctions on Russia for as long as necessary and intensify international pressure on President Vladimir Putin's government and its ally Belarus.
Pictures circulating on social media, still unverified by authorities, showed the bodies of youths lying scattered across the floor of the tavern, some also seen motionless on tables and couches.
Russia has stepped up air strikes on Ukraine this weekend, which has also seen the fall of a strategic eastern city to pro-Russian forces.
Authorities said the suspect, a 42-year-old Norwegian citizen of Iranian origin, was believed to be a radicalized Islamist with a history of mental illness who had been known to intelligence services since 2015.

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Ukraine called its retreat from the city a "tactical withdrawal" to fight from higher ground in Lysychansk on the opposite bank of the Siverskyi Donets river.
The Russian advances appeared to bring the Kremlin closer to taking full control of Luhansk province, one of Moscow's stated war objectives, and set the stage for Lysychansk to become the main frontline city on that front.
Although the approval of the Kyiv government's application by EU leaders meeting in Brussels is just the start of what will be a years-long process, it marks a huge geopolitical shift and will anger Russia as it struggles to impose its will on Ukraine.
The state-run Bakhtar News agency said at least a 1,000 people had died and another 1,500 injured and the death toll could rise.
The Russian strikes on Kharkiv, throughout Tuesday and continuing on Wednesday morning, were the worst for weeks in the area where normal life had been returning since Ukraine pushed Russian forces back in a major counter-offensive last month.
The latest diplomatic crisis is over the Kaliningrad enclave, a port and surrounding countryside on the Baltic Sea that is home to nearly a million Russians, connected to the rest of Russia by a rail link through EU- and NATO-member Lithuania.

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Moscow's separatist proxies claimed to have captured Toshkivka, a town on the mostly Ukrainian-held western bank of the Siverskyi Donets river, south of Sievierodonetsk, which has become the main battlefield city in recent weeks.
In a grievance-filled speech in St Petersburg, Russian President Vladimir Putin railed at the West, and the United States in particular, but sought to play down the EU issue. "We have nothing against it," he said. "It is not a military bloc. It's the right of any country to join economic union."
Ukraine applied to join the EU just four days after Russian troops poured across its border in February. Four days later, so did Moldova and Georgia — smaller ex-Soviet states also contending with separatist regions occupied by Russian troops.

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