TOP WRAP 8-Russia regroups after setbacks; Ukraine says psychiatric hospital hit

(Updates with President Zelenskiy, Meta criminal case)

* Biden to call for an end of normal trade with Russia - source

* Satellite images show Russians redeploy north of Kyiv

* Britain says Russia could launch assault on Kyiv within days

* Putin cites "positive shifts" in talks

By Pavel Polityuk and Natalia Zinets

LVIV, Ukraine, March 11 (Reuters) - Russian forces bearing down on Kyiv are regrouping northwest of the Ukrainian capital, satellite pictures showed, in what Britain said could be preparation for an assault on the city within days.

Ukraine accused Russian forces on Friday of bombing and shelling cities across the country, including hitting a psychiatric hospital near the eastern town of Izyum where hundreds of patients were sheltering in the basement.

In Russia, prosecutors asked a court to declare Meta Platforms an "extremist" organisation on Friday, after the owner of Facebook and Instagram allowed posts calling for the death of invading Russian troops.

Russia has been pounding Ukraine's cities while its main attack force north of Kyiv has been stalled on roads since the invasion's early days, having failed in what Western countries say was an initial plan for a lightning assault on the capital.

Images released by private U.S. satellite firm Maxar showed armoured units manoeuvring in and through towns close to an airport on Kyiv's northwest outskirts, site of fighting since Russia landed paratroops there in the first hours of the war.

Other elements had repositioned near the settlement of Lubyanka just to the north, with towed artillery howitzers in firing positions, Maxar said.

"Russia is likely seeking to reset and re-posture its forces for renewed offensive activity in the coming days," Britain's Ministry of Defence said in an intelligence update. "This will probably include operations against the capital Kyiv."

The British update said Russian ground forces were still making only limited progress, hampered by persistent logistical issues and Ukrainian resistance.

President Volodymyr Zelenskiy said Ukraine had "already reached a strategic turning point" in the conflict.

"It is impossible to say how many days we still have to free Ukrainian land. But we can say we will do it," he said in a televised address.

In an overnight statement, the Ukrainian general staff said Russian forces were regrouping after taking heavy losses. Ukraine had pushed Russians back to "unfavourable positions" in the Polyskiy district, near the Belarus border to the rear of the main Russian column heading towards Kyiv, it said.