RUSSIA and the US agreed today to work towards ending the war in Ukraine and improving diplomatic and economic ties as officials met in Saudi Arabia.

US Secretary of State Marco Rubio said that both sides broadly agreed to restore embassy staffing in Washington and Moscow, create a high-level team to support Ukraine peace talks, and explore closer relations and economic co-operation.

But he said the talks in Riyadh — attended by Russian Foreign Minister Sergey Lavrov — marked the beginning of a conversation, and more work needed to be done.

Mr Lavrov echoed Mr Rubio’s remarks and said that “the conversation was very useful.

“We not only listened, but also heard each other,” he said.

He added that any Nato-aligned troops in Ukraine would be “unacceptable,” following British and EU calls for boots on the ground.

No Ukrainian officials were present at the meeting, which comes as Ukraine continues losing ground to Russian troops in the nearly three-year war.

President Volodymyr Zelensky said his country would reject any outcome from the talks since Kiev was not included and postponed his own trip to the kingdom for a separate event.

European Nato members have also expressed fears of being sidelined and losing US military support.

Mr Rubio said today that ending the war could “unlock the door” for “incredible opportunities” in geopolitical and economic co-operation with Russia, which he said would benefit global relations in the long term.

The meeting followed a Telegraph report revealing a confidential proposed US-Ukraine contract from February 7, stating that the US and Ukraine should form a joint investment fund to ensure that “hostile parties” do not profit from Ukraine’s reconstruction.

The agreement covers Ukraine’s “economic value,” including “mineral resources, oil and gas resources, ports, other infrastructure.”

“This agreement shall be governed by New York law, without regard to conflict of laws principles,” it stated.

Under the terms, the US would take 50 per cent of recurring revenues from the extraction of resources, and 50 per cent of the financial value of “all new licences issued to third parties” for the future monetisation of resources.

There will be “a lien on such revenues” in favour of the US, it says.