Heavy fighting is underway in Ukraine’s second city as Russian troops entered Kharkiv in the early hours of Sunday morning.

Toxic fumes from the explosion prompted the Kharkiv authorities to ask citizens to stay indoors and keep windows shut.

The capital Kyiv otherwise appeared relatively calm, and remains under the control of Ukrainian forces, said deputy mayor Mykola Povoroznyk.

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Meanwhile in another economic blow to Russia, the Swift international payments system said it was preparing to implement western nations’ new measures targeting Russian banks in coming days.

The EU, along with the US, announced on Saturday night that they will ban selected Russian banks from the Swift system despite analysts saying the move could damage some European economies.

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