For the first time in years, the United States and Russia say they are making headway toward restoring the basic functions of their embassies.

Diplomatic teams from both sides met on Thursday at Russia’s consulate in Istanbul, continuing talks that began in February, far from the frontlines of Ukraine but still overshadowed by war. The U.S. State Department described the discussion as “constructive” and said both delegations agreed to continue.

At the top of the American list was a longstanding grievance — Russia’s prohibition on employing local staff at the U.S. embassy in Moscow. Washington says that rule is making it nearly impossible to keep its diplomatic presence operational. Moscow, for its part, is demanding the return of access to several diplomatic properties that have been seized or restricted in the U.S.

Deputy Assistant Secretary of State Sonata Coulter led the U.S. side, while Russia’s new ambassador to Washington, Alexander Darchiev, led the Russian delegation. The two sides sat down for six hours, but stayed far from the thornier issues like Ukraine.

Still, both described the outcome positively. Darchiev said the talks allowed movement toward the goal set by Presidents Donald Trump and Vladimir Putin — to get embassies back to working order.

“The focus now is on sorting through the proposals quickly,” Russia’s Foreign Ministry posted on Telegram, signalling the next round is already in planning.

Beyond staffing and property, the delegations also addressed a key practical concern — banking. The U.S. said both sides exchanged notes on stabilising financial operations for diplomatic missions, an issue made complicated by sanctions and restrictions on cross-border payments.

Discussions also touched on the resumption of direct U.S.–Russia flights, a small step that would carry weight, particularly for business ties and family visits that have grown more difficult since the war began.

Years of mistrust, surveillance complaints and travel restrictions have left the embassies in both countries barely functional. American diplomats report movement limits inside Russia, while Moscow says Western sanctions have made basic financial operations nearly impossible.

Both sides now appear to agree on one thing — diplomacy cannot function if embassies do not.

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