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Here’s the current situation as we understand it, along with the questions that remain unanswered.

U.S. Secretary of State Marco Rubio described the recent discussions as having made “tremendous” headway. Source: AP / Martial Trezzini
The areas of Donetsk and Luhansk, collectively known as the Donbas, along with Crimea, would be acknowledged as effectively Russian by the United States, following Russia’s annexation of Crimea back in 2014.
Furthermore, Russia could see a reintegration into the global marketplace, with the possibility of sanctions being lifted progressively. In addition, Russia may be invited back into the Group of Eight (G8). This international coalition, which includes the US, UK, Canada, France, Italy, Germany, and Japan, has been functioning as the G7 since Russia was suspended in 2014 due to its actions in Crimea and subsequently announced its departure in 2017.
Russian President Vladimir Putin, responding to the US proposal, earlier said it could form the basis of a resolution to the conflict.
Who wrote the plan?
That came after a group of US senators, including Republican Mike Rounds and independent Angus King, suggested otherwise.
“It is based on input from the Russian side. But it is also based on previous and ongoing input from Ukraine.”
What’s in Europe’s counter-proposal?
Ukraine’s military would be capped at 800,000 personnel during peacetime rather than the blanket 600,000 in the US proposal.
In place of this point, the counter-proposal says “provision will be made to address the suffering of victims of the conflict”.