The warring sides are still far apart heading into the third round of U.S.-brokered peace negotiations, set for Wednesday in Istanbul.

Russia and Ukraine appear close to agreeing to hold a new round of peace talks in Turkey this week, although the Kremlin said on Monday that the two sides held "diametrically opposed" positions on how to end the war.

Vasily Astrov, expert on the Russian economy at the Vienna Institute for International Economic Studies, told Newsweek that "inflation has really subsided markedly over the past few months. The outcome of this policy has been a marked cooling of domestic demand, with the welcome side effect of rapid disinflation.