Ukrainian officials have not confirmed a retreat from the town in Russia’s Kursk region, parts of which were captured by Kyiv’s forces last summer.

Russian forces have recaptured Sudzha, the largest town that Ukraine once occupied in the Kursk region, according to Moscow, threatening Kyiv’s sole territorial bargaining chip amid pressure to negotiate an end to the war.

Russia claimed Thursday that its troops have driven the Ukrainian army out of the biggest town in Russia’s Kursk border region, as a senior Kremlin official said that a U.S.-proposed 30-day ceasefire in the three-year war on Ukraine would help Kyiv by giving its military a break.