Will Ukraine be turned into post-Soviet Austria?

Ukraine's conversion into a demilitarised country, like Austria or Sweden, with its own army, can be regarded as a compromise, Kremlin spokesman Dmitry Peskov said on Wednesday.

"This is the option that is really being discussed now and which can be seen as a real compromise," he told reporters.

According to the spokesman, theUkrainian situation can be improved based on mutual agreements between Moscow and Kiev. "The situation regarding Ukraine can be improved by means of agreements, reached at the talks between the Russian and Ukrainian delegations," Peskov said.

At Russia's negotiations with Ukraine, according to presidential aide Vladimir Medinsky, Kiev earlier expressed willingness to demilitarise, while retaining its own armed forces, following the example of Sweden or Austria.