Russia has made “small advanced” in Kharkiv for the first time in several weeks, the British defence ministry said.
In its latest intelligence update, the ministry said forces continue their assault against the Sieverondonetsk region.
It also revealed that Russia could increase its defence budget by 20 percent.
The update continued: “Russian government funding is allowing the country’s defence industrial base to be slowly mobilised to meet demands placed on it by the war in Ukraine.
“However, the industry could struggle to meet many of these requirements, partially due to the effects of sanctions and lack of expertise. Russia’s production of high-quality optics and advanced electronics likely remain troubled and could undermine its efforts to replace equipment lost in Ukraine.”