Hope for peace in Ukraine has taken a boost this morning as Vladimir Putin welcomes Donald Trump's special envoy Steve Witkoff in Moscow.

State-owned Russian media reported Wednesday, days before the White House's deadline for Russia to reach a peace deal with Ukraine or potentially face severe economic penalties that could also hit countries buying its oil.

Witkoff took an early morning stroll through Zaryadye Park, a stone's throw from the Kremlin, with Kirill Dmitriev, the Russian president's envoy for investment and economic cooperation, footage aired by TASS showed.

Dmitriev played a key role in three rounds of direct talks between delegations from Russia and Ukraine in Istanbul in recent months, as well as discussions between Russian and U.S. officials. The negotiations have made no progress on ending the three-year war following Russia's invasion of its neighbour.

Moscow is yet to confirm whether Witkoff will meet with Russian President Vladimir Putin during his fifth visit to Moscow.

Trump's deadline for Putin ends on Friday and has threatened "severe tariffs" and other economic penalties if the fighting doesn't stop.

The US President has expressed increasing frustration with Putin over Russia's escalating strikes on civilian areas of Ukraine, intended to erode morale and public appetite for the war.

The intensified attacks have occurred even as Trump has urged the Russian leader in recent months to relent.

The Russian Presdient is increasingly confident of military victory in Ukraine and has no incentive to stop the fighting as things stand.

A Kremlin source told Reuters that Russia's General Staff has told Putin that they expect Ukraine's army to crumble in two to three months.

Another insider claimed that Putin values his relationship with the White House boss but "cannot afford to end the war just because Trump wants it."