TOP HEADLINES

· Russian President Vladimir Putin told German Chancellor Olaf Scholz by phone that Germany's and the wider West's approach to Ukraine was "destructive" and urged Berlin to rethink its approach, the Kremlin said. Scholz in turn urged Putin to find a diplomatic solution to the war as soon as possible, "including a withdrawal of Russian troops." 

· While U.S. President Joe Biden said he would be willing to talk to his Russian counterpart Vladimir Putin about the conflict, the White House later said he does not intend to do so as conditions for such a channel are not currently in place. 

· Several Ukrainian embassies in Europe have received "bloody packages" containing animal eyes, Kyiv's foreign ministry. The incidents follow a series of letter bombs being sent to sites in Spain, including Ukraine's embassy in Madrid.

· The G7 and Australia have agreed a $60 per barrel price cap on Russian seaborne crude oil after EU members overcame resistance from Poland to seal an agreement. 

· Russia said it would continue to find buyers for its oil, despite what it said was a "dangerous" attempt by Western governments to introduce a price cap on its exports.

· Germany is preparing to deliver seven Gepard tanks to Ukraine, adding to the 30 tanks it has already sent to Ukraine for it to use against the Russian army.

· Russia's foreign ministry said it was "outraged" by France's support for plans to create a tribunal on alleged war crimes committed by Russia in Ukraine.

· The International Atomic Energy Agency is hoping to secure an agreement between Russia and Ukraine to set up a protection zone at the Zaporizhzhia nuclear power plant by the end of the year.

· Russia's economy is set to shrink 2.5 percent next year, following the 3 percent contraction in 2022, according to a Reuters poll, as high inflation continues to give its central bank only limited room to reduce interest rates.

· The UK's Defense Ministry said Russia is likely planning to encircle the Donetsk Oblast town of Bakhmut with tactical advances to the north and south. The village has been the center of brutal fighting in recent weeks. 

· Several people tried to steal a Banksy mural in Kyiv by slicing a battle-scarred wall, but the people were spotted and the artwork of a woman in a gas mask and dressing gown is now under police protection. Several arrests were made. 

IN DETAIL

Peace talks to remain on hold

Despite U.S. President Joe Biden saying he was willing to talk to his Russian counterpart Vladimir Putin, the White House said on Friday that he does not intend to do so for now as conditions for such discussions currently do not exist. 

"We're just not at a point now where talks seem to be a fruitful avenue to approach right now," national security spokesperson John Kirby said. 

His comments show the continued chasm between Ukraine, its main backer the U.S., and Russia on negotiations more than nine months into the war.

Kyiv says peace talks are only possible if Russia halts its attacks and withdraws from all Ukrainian territories it seized, while the Kremlin says the West must recognize Moscow's claimed territories before any talks with Putin.

"The president of the Russian Federation has always been, is and remains open to negotiations in order to ensure our interests," Kremlin spokesman Dmitry Peskov told reporters.

State Department spokesperson Ned Price said the U.S. would continue to fund Ukraine's war effort with the aim of forcing Russia into peace talks.

Mykhailo Podolyak, a political adviser to Ukrainian President Volodymyr Zelenskyy, said Russia's offers of talks were "an illusion".

There was an "absolute consensus" among Western states, he said, that there could be no direct talks with Putin and that any negotiations with Moscow could be held only if it pulled out all its troops.

Kyiv and its Western allies fear any ceasefire would let Russian forces recover from a string of losses and regroup.

Peskov said Russia would not pull out of Ukraine, adding that the search for ways to end the war were being blocked by the U.S. refusing to recognize Russia's territorial gains.

Biden has not spoken directly with Putin since the start of the conflict, having branded Putin a "butcher" who "cannot stay in power". However, he has signaled in recent weeks that Washington would like to bring Moscow back to the negotiating table.

(Cover: An aircraft that was destroyed during fighting between Ukrainian and Russian forces is seen at the Kherson international airport in Kherson, Ukraine, December 2, 2022. /CFP)