Vladimir Putin has said Russia may have to strike a deal with Ukraine to end its war.
Speaking at a press conference in Kyrgyzstan, the Russian president also admitted there had been problems mobilizing hundreds of thousands of conscripts to fight in the conflict.
Russia has suffered a series of military setbacks since launching its invasion of Ukraine in February this year.
In recent months, Ukraine has regained control of large areas of the occupied territory in the east, while Russia recently ceded ground in the southern city of Kherson.
Now Mr Putin has hinted that Russia will likely have to come to an agreement regarding Ukraine in the future.
It is one of the first times that he has spoken publicly about a possible peace agreement.
It also comes after Kremlin spokesman Dmitry Peskov said on Tuesday that the outcome of the conflict should be a “just and lasting peace”.
However, he said Russia “doesn’t see them (the prospect of negotiations) at the moment.”
The sticking point will likely be over Crimea and other Russian-occupied Ukrainian territories.
Ukrainian President Volodymyr Zelenskyy has always said that Russia must leave all occupied territories before peace talks can begin.
This includes Crimea, which Russia annexed in an illegal invasion in 2014.
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It also annexed Donetsk, Kherson, Luhansk and Zaporizhzhia regions following referendums in September that the West called a “sham”.
Last month, Mr Putin demanded that the West formally recognize the four regions before peace talks could take place.
On Friday, he also admitted that there had been problems obtaining equipment and clothing for the hundreds of thousands of conscripts called up to fight in Ukraine.
At the press conference in Bishkek, he admitted that there had been problems with supplying the 300,000 men who had been called up in a mobilization campaign in September and October.
However, he said those issues are now easing.
The Russian president also said there was no need to call up additional troops to fight in Ukraine, as there were 150,000 newly drafted fighters who had not yet been sent to the front.
Although Mr Putin has repeatedly said the mobilization is over, the Kremlin has refused to rescind an official decree ordering the summons, fueling fears that a second wave could be announced.