Ukraine's military is inflicting "extraordinarily significant" losses on Russian forces near the town of Vuhledar in the eastern Donbas region, President Volodymyr Zelenskiy said on Sunday.

"The situation is very complicated. And we are fighting. We are breaking down the invaders and inflicting extraordinarily significant losses on Russia," Zelenskiy said in his nightly video address.

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Zelenskiy referred to several towns in Donbas, where fighting has been focused for months, saying "the more losses Russia suffers there, in Donbas -- in Bakhmut, Vuhledar, Marinka, Kreminna -- the faster we will be able to end this war with Ukraine's victory".