The Kremlin confirmed an American delegation led by special envoy Steve Witkoff will meet with Vladimir Putin on Tuesday. Kyiv said some “tough issues” still have to be worked out.

Ukraine has launched a restructuring of $2.6bn of growth-linked debts that are seen as key to financing its war effort and which had threatened to drain billions of dollars from Kyiv’s postwar finances.

Ukraine launched an offer to investors to swap $3.2 billion of complex and costly GDP warrants for international bonds on Monday, the government said, as it attempts to clear a major remaining hurdle in its push to emerge from sovereign default.

Diplomats face an uphill battle to reconcile Russian and Ukrainian “red lines” as a renewed U.S.-led push to end the war gathers steam, with Ukrainian officials attending talks in the U.S. over the weekend and Washington officials expected in Moscow early this week.

Both vessels are on a list of ships subject to sanctions imposed against Russia following its full-scale invasion of Ukraine.

Ukraine started a process to exchange securities linked to economic growth into bonds as it seeks to restructure the terms of $3.2 billion in debt after another round of talks with a group of private creditors.

The team of Ukrainian negotiators began meeting Sunday morning with Rubio, Special Envoy Steve Witkoff and Jared Kushner, President Trump's son-in-law.

Around 36 missiles and nearly 600 drones were launched on targets across Ukraine overnight, officials said, killing three and injuring dozens of others. Russia has intensified attacks on Ukrainian civilian and energy infrastructure as the embattled nation heads into winter, despite US-led efforts to secure a peace deal.