Russia is reported to be preparing to increase the intensity of ballistic missile strikes on Ukraine as talks on a peace deal reach a deadlock, Bloomberg reported, citing three people close to the Kremlin.

Axar.az reports, citing Ukrainska Pravda, that the sources said all attempts at negotiations have effectively collapsed and the two sides are back at square one.

"Russia is weighing an intensification of powerful conventional ballistic missile attacks on Kyiv, including the centre of the capital, and infrastructure targets in other Ukrainian cities, the people said, asking not to be identified because the matter is sensitive," the statement reads.

The sources also said that all attempts at negotiations have effectively collapsed and the two sides are back at square one.

They also noted Russian leader Vladimir Putin will not end the war under the economic pressure of sanctions and Ukrainian attacks on Russian oil refineries and logistics networks.

"Moscow increasingly views the Ukrainian strikes as attacks by NATO states because alliance members supply Kyiv with weapons and intelligence, the people said. The current phase of hostilities isn't the peak of military escalation," the source said.