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Any substantial loss of territory in Luhansk will undermine Russia's strategy - British intelligence.

Ukraine continues offensive operations in the north-east of the country while Russian forces have established a defensive line between the Oskil River and the town of Svatove.

According to Ukrinform, the UK Ministry of Defense said this in its latest intelligence update published on Twitter.

"Russia likely sees maintaining control of this zone as important because it is transited by one of the few main resupply routes Russia still controls from the Belgorod region of Russia. In addition, this line sits along the border of Luhansk Oblast, part of the Donbas, which Russia aims to 'liberate' as one of its immediate war aims. Any substantial loss of territory in Luhansk will unambiguously undermine Russia's strategy," the report said.

It added Russia would likely attempt to conduct a stubborn defense of this area, but it is unclear whether Russia's front line forces have sufficient reserves or adequate morale to withstand another concerted Ukrainian assault.

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