(Reuters) -European Union states hold a first discussion on Wednesday on proposed new sanctions over Russia's war in Ukraine that would target Chinese and Iranian firms and allow export curbs on third countries for busting existing trade restrictions.

HEATED DEBATE

* Talks among EU envoys start at 0800 GMT and are set to be heated, according to one diplomat, with Russia hawks upset the plan doesn't go far enough but others wary of damaging their international ties.

GRAIN EXPORTS

* The United Nations said inspections resumed on Tuesday of outbound vessels under a deal allowing the safe Black Sea export of Ukraine grain, which Moscow has threatened to quit on May 18 over obstacles to its own grain and fertilizer exports.

CONFLICT

* Russia's air defence forces shot down an "enemy" drone in the Kursk region bordering Ukraine, its governor said on Wednesday, adding that falling debris damaged a gas pipeline and a house.

* The Ukrainian military said its forces had repulsed 46 attacks in 24 hours along the eastern front in Donetsk region, including the city of Bakhmut, and carried out eight strikes on enemy "power and personnel" as well as two strikes on an anti-aircraft missile system.

* Britain is set to formally classify Russian mercenary force Wagner Group as a terrorist organisation, which would impose financial sanctions and other penalties, as a way of increasing pressure on Russia, The Times newspaper reported on Tuesday.

DIPLOMACY

* Dutch Prime Minister Mark Rutte discussed the war in Ukraine on Tuesday with Brazilian President Luiz Inacio Lula da Silva and said there should be no concessions that affect Ukrainian sovereignty. Lula has been advocating the creation of a group of nations not involved in the war that can broker peace talks and has suggested concessions from both side.

ECONOMY

* Pakistan is planning to blend newly purchased Russian crude with Arabian light crude in order to create a mixture that will be more easily processed by the nation's oil refineries, Pakistan's energy minister said on Tuesday.

VICTORY DAY

* Russia fired cruise missiles at Kyiv on Tuesday and paraded troops across Moscow's Red Square for its annual celebration of victory in World War Two, pared back amid shortages of manpower and arms at the front after a failed winter campaign in Ukraine.

* After Estonia banned Soviet Victory Day celebrations, several hundred people in the Russian-speaking town of Narva watched celebrations across the river which separates it from Russia.

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(Compiled by Reuters editors)