In peace talks, Russia and Ukraine are seeking a middle ground.

 (Reuters) - KYIV/LVIV, Ukraine, March 16 - On Wednesday, Russia and Ukraine both emphasized a newfound willingness to compromise as peace talks were scheduled to resume three weeks after a Russian assault failed to topple the Ukrainian government.

President Volodymyr Zelenskiy of Ukraine said the negotiations were becoming "more realistic," while Russian Foreign Minister Sergei Lavrov said there was "some possibility for compromise" now that Ukraine's neutral status, a key Russian demand, was on the table.

According to the Kremlin, the sides are negotiating a position for Ukraine akin to that of Austria or Sweden, European Union members that are not part of NATO's armed alliance.

Russian troops have been halted at the gates of Kyiv three weeks into the invasion, having suffered huge losses and failed to grab any of Ukraine's major cities in a battle that Western diplomats say Moscow expected to win in days.

As Moscow grappled with a dearth of new troops to keep fighting, Ukrainian leaders expressed hope this week that the war could finish sooner than predicted, possibly within weeks.

Talks were set to resume by video connection on Wednesday for the third day in a row, marking the first time they have lasted longer than a single day, which both parties have claimed indicates they have entered a more serious phase.

"The discussions are still going on, and from what I've heard, the positions taken during the negotiations are already sounding more plausible. However, more time is required for decisions to be made in Ukraine's best interests "Overnight, Zelenskiy gave a video message.

On Tuesday, Zelenskiy hinted at a possible path to agreement, implying that Ukraine would be willing to accept foreign security guarantees that fell short of its long-held goal of full membership in NATO.

In the months before Moscow launched what it terms a "special operation" to disarm and "denazify" Ukraine, keeping Ukraine out of NATO was one of Russia's primary goals.

"For obvious reasons, the negotiations are difficult," Lavrov told RBC news. "However, there is some prospect of reaching an agreement."

"Neutral status is now being seriously discussed," Lavrov said, "along with, of course, security guarantees." "Right now, this is being debated in discussions - there are very specific formulations that, in my opinion, are on the verge of agreement."

According to Kremlin spokesman Dmitry Peskov, a demilitarized Ukraine with its own army, similar to Austria or Sweden, is being considered as a possible solution. They are the most populous of the six EU countries that are not members of NATO.

"This is an option that is presently being debated and may be considered a compromise," Peskov said, according to the Russian news agency RIA.

Prior to the beginning of talks on Wednesday, Mykhailo Podlolyak, the chairman of Ukraine's negotiating delegation, claimed that Ukrainian military counteroffensives had "radically changed the parties' dispositions."

Russian soldiers were stranded on highways, trying to cope with Ukrainian terrain, and failing to secure control of the air, according to a British intelligence assessment issued on Wednesday.

"The Ukrainian Armed Forces' tactics have skillfully exploited Russia's lack of maneuverability, slowing the Russian advance and inflicted serious losses on the invading forces," the statement stated.