US Secretary of State John Kerry is meeting his Russian counterpart Sergei Lavrov in London for critical talks aimed at resolving the crisis in Ukraine.
It came as the West warned of sanctions including asset freezes and travel bans unless a planned vote on the southern region of Crimea breaking away to join Russia is called off.
Mr Kerry has warned of "very serious steps" from the US and European Union if the referendum goes ahead in the Black Sea peninsula, which has close links to Moscow.
The vote is expected to back the splitting off of the region, where the majority of people speak Russian.
A soldier, believed to be Russian, on guard at a Ukrainian military base Western powers have already indicated they will not recognise the outcome of Sunday's Crimean vote, which they consider illegal.
Speaking at the start of talks, the Russian Foreign Minister admitted the crisis over Crimea was a "very difficult situation."
Mr Lavrov said: "Many events have happened and a lot of time has been lost so now we have to say what can be done."
Mr Kerry said he hoped the talks being held in the US Ambassador's residence in Regent's Park would "resolve some of the differences between us".
He added: "Obviously we have a lot to talk about and look forward to an opportunity to dig in to the issues and possibilities that we may be able to find about how to move forward together to resolve some of the differences between us.
"We look forward, I know, to a good conversation."
John Kerry met William Hague and David Cameron at Downing Street And tensions appeared to surface even during the introductory remarks when Mr Kerry's interpreter jumped in to provide a Russian translation of his comments to the obvious annoyance of Mr Lavrov's own translator.
Foreign Secretary William Hague has said it will be "formidably difficult" for Mr Kerry and Mr Lavrov to make progress on defusing the Ukraine crisis.
Speaking after holding separate talks with both men, Mr Hague said he believed they were "seriously committed" to finding a way forward during face-to-face discussions.
"But the fact that so far Russia has not taken any actual action to de-escalate the tensions makes this a formidably difficult task today," Mr Hague said.
The Crimea vote on Sunday is "deeply unhelpful", and had set a "diplomatic deadline" he believed.
Mr Hague added: "This is a referendum which doesn't meet any international norms or standards."
EU foreign ministers will meet in Brussels on Monday to discuss sanctions.
Prime Minister David Cameron underlined the threat of sanctions as Mr Kerry arrived in Downing Street for a breakfast meeting.
Mr Cameron said: "We want to see progress, we want to see the Russians and Ukrainians talking to each other and if they don't there are going to have to be consequences."
However, the Russian state oil company Rosneft has said a visa ban on its chief executive would be "stupid" and hurt Western firms more.
Meanwhile, tensions continue to run high in Ukraine, with clashes in the divided east of the country which left at least on person dead.
Russia said it showed the Ukrainian authorities had lost control and that it reserved the right to protect its "compatriots" there.
Pro-Moscow authorities in Crimea have also said they could sell the Ukrainian energy firm Chornomornaftohaz to a Russian company "like Gazprom" once the regional authorities take control of it.
Moscow, which does not recognise the new interim administration in Kiev, has so far ignored the threat of sanctions designed to force it to pull back from Crimea, which is home to its Black Sea fleet.
The operation by Russia to seize Crimea began within days of Ukraine's pro-Kremlin president Viktor Yanukovych being forced from office, after three months of demonstrations against a decision to ditch closer ties with the European Union in favour of Russia.
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