According to military analysts and soldiers who spoke to The New York Times (NYT), the Ukrainian army has withdrawn from almost all of the territory it occupied in Russia’s Kursk oblast.

As a result of Moscow’s counterattacks, Ukraine’s months-long operation to seize and occupy Russian territory is nearing its end.

At the peak of the offensive, the Ukrainian army controlled approximately 1,295 square kilometers of Russian territory.

According to Pasi Paroinen, a military analyst at the Finland-based Black Bird Group, as of Sunday, the Ukrainian army was trying to hold on to a narrow area of approximately 78 square kilometers along the Russia-Ukraine border.

“The end of the war is coming,” Paroinen told the newspaper.

While the amount of Russian territory under Ukrainian control could not be independently verified, intense fighting was reported in the region.

With Russia’s rapid advance, supported by continuous air strikes and drone attacks, the Ukrainian army withdrew last week from several villages in Kursk oblast and from Sudzha, the main city they controlled.

The General Staff of the Ukrainian Armed Forces announced that the troops had withdrawn to more defensible areas inside Russia and were taking advantage of the rugged terrain to provide better fire control against the approaching Russian forces.

On Sunday, it published a map showing the narrow area that Ukraine still controlled in Kursk oblast.

However, it remains unclear how long the Ukrainian army will be able to hold this area.

Ukrainian soldiers stated that the ongoing fighting in Kursk is no longer about holding Russian territory, but rather about controlling the best defensive positions to prevent the Russians from entering Ukraine’s Sumy oblast and opening a new front in the war.

An assault company commander, who identified himself only by his radio code, Boroda, said in a telephone interview, “We continue to maintain our positions on the Kursk front,” and added: “The only difference is that our positions have moved significantly closer to the border.”

Military experts say that although Ukraine’s withdrawal from most of Kursk oblast was rapid, it came after months of Russian attacks and bombardment that gradually weakened Ukraine’s foothold in the region and cut off supply routes, eventually making withdrawal necessary.

Austrian military analyst Franz-Stefan Gady, who visited Ukraine’s Sumy oblast on the Kursk border last month and met with Ukrainian commanders, said, “What has happened in the last few months was an operation that prepared the conditions for a successful advance.”

Serhiy Kuzan, the head of the non-governmental organization Ukrainian Center for Security and Cooperation, said, “There was no danger of encirclement of Ukrainian troops, and there is no evidence to the contrary.”

Meanwhile, Trump’s special representative for the Middle East and also a mediator with Russia, Steve Witkoff, told CNN on Sunday that he expected Trump to meet with Putin this week.

Witkoff said he had a positive three-to-four-hour meeting with Putin last week. While refraining from sharing the details of their discussions, Witkoff expressed his continued optimism that an agreement could still be reached.

Yuri Ushakov, aide to the President of Russia, stated that Moscow is interested in a long-term resolution to the war in Ukraine and does not want a temporary ceasefire.

In an interview with Rossiya-1 television, Ushakov said, “We believe that our goal is a long-term peaceful solution; we are trying to achieve this. We want a peaceful solution that takes into account the legitimate interests and known concerns of our country. I think that steps imitating peace actions will not benefit anyone in this situation.”

Ushakov also mentioned that he conveyed Moscow’s position on this issue to US National Security Advisor Michael Waltz.

“Of course, I interpreted the agreements on the temporary ceasefire and stated our position that this is nothing more than a temporary respite for the Ukrainian army,” he added.

Foreign investors are exploring alternative avenues to purchase securities of Russian companies amid rumors that Russian financial markets will reopen to international markets within a few weeks.

According to a Bloomberg report, interested parties are accumulating shares of Rusal on the Hong Kong stock exchange for this purpose. This activity led to a 75% increase in the value of these shares in February.

Shares of Austria-based Raiffeisen Bank International (RBI), which has a subsidiary in Russia, have risen by 35% on the Vienna Stock Exchange this year, while shares of Hungarian OTP Bank Nyrt, which remains in the Russian market, have gained 11% since the beginning of the year.

Grigory Marinichev, a partner and securities lawyer at the New York-based law firm Morgan, Lewis & Bockius, told Bloomberg that the wave of demand for securities of Russian companies or foreign companies doing business in Russia is being driven by hedge funds and private investors.

Marinichev stated, “They want to be the first in this trade. But at the moment, we can’t tell them anything other than to follow the news.”

Bloomberg also noted a positive trend in Russian stock exchanges, with the ruble appreciating by 15% against the dollar since the beginning of the year.

The report mentioned that many investors are warning their clients against excessive expectations regarding Russian assets.

It was emphasized that caution is necessary due to the uncertainty surrounding the details of easing US sanctions, especially since some restrictions are determined by law and require Congressional approval. Additionally, European Union sanctions remain in place.

Alexander Kolyandr, a former strategist at Credit Suisse’s Moscow office, commented, “It will take years for Russia to become attractive for investment again. But right now, it’s hard for people to find good investment ideas, and a possible peace agreement creates clear opportunities.”

US President Donald Trump had stated that he did not rule out lifting sanctions against Russia once the conflict in Ukraine is resolved, but that the time was not yet right.

The Moscow Exchange recorded the highest trading volume in the stock market since March 2022, following a phone call between the Russian and US presidents on February 12.

An all-time record was broken during the evening session of February 12 and the morning session of February 13.