Moscow signalled on Friday (Mar 25) it was scaling back its ambitions in Ukraine to focus on territory claimed by Russian-backed separatists as Ukrainian forces went on the offensive, recapturing territory on the outskirts of the capital Kyiv.

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In the first big sign that Western sanctions on Russia were impacting investment from China, sources told Reuters state-run Sinopec Group, Asia's biggest oil refiner, had suspended talks on a petrochemical investment and a venture to market Russian gas.

In the month since they launched their invasion of Ukraine, Russian troops have failed to capture any major city. An assault that Western countries believe was aimed at swiftly toppling President Volodymyr Zelenskiyy's government was halted at the gates of Kyiv.

The Russians instead have been bombarding and encircling cities, laying waste to residential areas and driving around a quarter of Ukraine's 44 million people from their homes.

US President Joe Biden was visiting Poland for a first-hand look at the refugee crisis. Poland has taken in more than half of the 3.7 million Ukrainians who have fled abroad.

Battlelines near Kyiv have been frozen for weeks with two main Russian armoured columns stuck northwest and east of the capital. A British intelligence report on Friday described a Ukrainian counter-offensive that had pushed Russians back in the east.