KYIV- Ukraine and Russia are moving towards a potential deal to end the war, Bloomberg News reported on Friday, citing the top aide to Ukrainian President Volodymyr Zelenskiy.

Kyrylo Budanov, a former head of Ukraine's military intelligence, said that he saw progress towards a deal, but declined to say what a potential compromise on territory, a key stumbling block, would look like.

"No final decision has been made yet," he said, according to the report. "But, in principle, everyone now clearly understands the limits of what is acceptable. That’s enormous progress."

"They all understand the war needs to end. That’s why they are negotiating,” Budanov said in an interview with Bloomberg on April 4. “I don’t think it will be long.”

Budanov was appointed head of Zelenskiy's office in January and has become a key Ukrainian negotiator during U.S.-brokered talks between Kyiv and Moscow.

The only tangible outcome from several rounds of talks this year was the exchange of prisoners of war. In the latest exchange in March, Ukraine and Russia swapped 500 POWs.

Another prisoner swap was possible ahead of the Orthodox Easter this weekend, Ukrainian officials said.

RUSSIA, UKRAINE AGREE TO EASTER CEASEFIRE

Russia announced a 32-hour ceasefire over two days for Orthodox Easter, and Ukraine agreed to reciprocate that.

The Kremlin said the ceasefire would be in effect from Saturday at 4 p.m. (1300 GMT) to midnight (2100 GMT) on Sunday.

Budanov said that Kyiv and Moscow maintained “maximalist” positions in the talks so far, but believed the positions would be closer in the search for a compromise.

Russia demands that Ukraine withdraw from parts of Donbas that Kyiv still controls. Ukraine refuses to do so.

Zelenskiy has said that, given a ceasefire between the U.S. and Iran in the Middle East, a new trilateral meeting of negotiating teams could take place soon.

He said that the spring and summer months would be difficult for Ukraine as it would face pressure on the battlefield and also diplomatically to end the war.

-Reporting by Olena Harmash; Editing by Alex Richardson/Reuters