*

Kremlin says Trump is wrong on army and economy

*

Says Russia's top diplomat will update U.S. on Wednesday

*

Kyiv, not Moscow, is struggling on battlefield, Kremlin

says

*

Nationalists believe Trump is washing hands of Ukraine

(Adds senator's 'impasse' comments, economic forecasts in

paragraphs 7-9)

By Andrew Osborn and Dmitry Antonov

MOSCOW, Sept 24 (Reuters) - The Kremlin on Wednesday

flatly rejected what Donald Trump said was the rationale behind

his rhetorical U-turn on the war in Ukraine, saying it appeared

that the U.S. president had been influenced by Ukraine's leader

and was mistaken.

In an abrupt shift in Ukraine's favour, Trump said on

Tuesday after meeting Ukrainian President Volodymyr Zelenskiy

that he believed that Kyiv could recapture all of its land taken

by Russia - which controls around one-fifth of the country - and

that it should act now, with Moscow facing economic problems.

The Trump flip-flop was seen by some Russian nationalists as

a sign he was washing his hands of the war in Ukraine after his

unsuccessful attempts to broker a quick peace deal, noting he

had not promised any more U.S. help to Kyiv but had rather

placed the onus on Ukraine and the European Union.

The Kremlin, which says it is keen for better ties with

Washington, countered that the Russian economy was stable,

despite some problems caused by Western sanctions, and that

Russian forces' slow but steady advance in Ukraine was part of a

deliberate strategy, with Kyiv, not Moscow, on the back foot.

"As far as we understand, President Trump's statements were

made after communicating with (Ukrainian President) Zelenskiy

and, apparently, under the influence of a vision set out by

Zelenskiy. This vision contrasts sharply with our understanding

of the current state of affairs," Kremlin spokesman Dmitry

Peskov told reporters.

"The fact that Ukraine is being encouraged in every possible

way to continue hostilities and the argument that Ukraine can

win something back is, in our view, a mistaken argument... The

dynamics on the front lines speak for themselves," he said.

Though Russia has continued to grind forward in many areas,

it has not made a major breakthrough in Ukraine for some time.

Dmitry Rogozin, a nationalist Russian senator, said he believed

that the front lines were at an impasse, as parity in equipment,

training and morale stalled momentum on both sides.

RUSSIA REJECTS TRUMP'S 'PAPER TIGER' COMMENT

Peskov said Russia's macroeconomic situation was stable,

though data released by the Russian economy ministry on

Wednesday showed that the GDP growth forecast for this year had

been cut to 1% from 2.5%.

The finance ministry proposed raising value-added tax to

fund military spending.

Trump's description of Russia as a "paper tiger" was

rejected by the Kremlin. Russia was more associated with a bear

than a tiger, Peskov told the RBC radio, and paper bears didn't

exist.

Some Russian nationalists saw Trump's U-turn as bad news for

Kyiv.

"Yes, Trump suddenly told the world about his love for

Ukraine," said Konstantin Malofeyev, an ultra-nationalist tycoon

and political influencer.

"But the main point... is that the U.S. is washing its hands

of the matter. The European Union will pay for everything."

LAVROV TO SET OUT RUSSIA'S VIEW TO RUBIO

Peskov said that Russian Foreign Minister Sergei Lavrov

would meet U.S. Secretary of State Marco Rubio later on

Wednesday and provide "real information" to Washington.

He said Russia's incremental advances in Ukraine were

deliberate.

"We are going forward very carefully to minimise losses and

so as not to destroy our offensive potential," he said.

Western military analysts attribute the lack of any recent

Russian breakthrough to resourceful Ukrainian defences and the

nature of drone warfare, with both sides worn down by more than

3-1/2 years of war.

Dmitry Medvedev, deputy chairman of Russia's Security

Council, said Trump had "slipped into an alternate reality" and

predicted he would U-turn again. "The main thing is to keep

flipping his position 180 degrees on every possible issue," he

said.

(Reporting by Andrew Osborn and Dmitry Antonov in Moscow;

Additional reporting by Mark Trevelyan; Editing by Sharon

Singleton, Hugh Lawson and Ros Russell)