Ukraine and Russia: What you need to know right now

RUSSIA is promising to scale down military operations around the capital Kyiv, while Ukraine for its part is mooting the adoption of neutral status, in confidence-building steps that may help de-escalate the five-week war.

TALKS AND DIPLOMACY

* Ukraine proposed not joining alliances or hosting bases of foreign troops.

* The talks in Istanbul began with a "cold welcome" and no handshake.

* Russian billionaire Roman Abramovich was there.

* The United States is sceptical of Russia's seriousness in pursuing peace.

* Russian President Putin and French counterpart Macron talk again by phone.

* Ukrainian President Zelenskiy will address Australia's parliament on Thursday.

FIGHTING

* Moscow's invasion has been halted on most fronts by strong resistance, with Ukrainians recapturing territory.

* A Russian rocket hit an administration building in Mykolaiv, killing at least 12 people.

* Russia said it destroyed a fuel depot.

* Defence Minister Shoigu said Russia had degraded Ukraine's military and would respond if NATO supplied planes and air defence systems.

ECONOMY

* Share markets and global borrowing costs surged on signs of progress in talks. Ukrainian bonds and Russia's roubles also benefited, while the oil price dropped.

* Russia retaliated in what it has called an "economic war" with the West by offering to buy back $2 billion Eurobonds maturing next month in roubles rather than dollars.

* Holcim, the world's biggest cement-maker, said it was exiting the Russian market; Japan will ban the export of high-end cars and luxury goods to Russia; Germany wants to end all fossil fuel imports from Russia.

QUOTES* "It is up to the sides to stop this tragedy," Turkey's President Erdogan at talks.

* "We are eight people. We have two buckets of potatoes, one bucket of onions," Irina, boiling soup in the stairwell of her damaged building.

* "It is very scary to be left with nothing," Gennadiy, an old man leaving his wrecked building with his belongings on his back.

READ MORE: Latest development on Ukraine-Russia crisis