Russia said that a neutral Ukraine with its own army along the lines of Austria or Sweden was being looked at as a possible compromise in peace talks with Kyiv.

“This is a variant that is currently being discussed and which could really be seen a compromise”, - Kremlin spokesman Dmitry Peskov said.

He was commenting on remarks from Vladimir Medinsky, Russia’s chief negotiator, who earlier told state TV: “Ukraine is offering an Austrian or Swedish version of a neutral demilitarized state, but at the same time a state with its own army and navy”.