The issue of local elections in the separatist territories appears to have been a focus in recent diplomatic talks. Holding local polls in Donetsk and Luhansk could lessen the more prickly political differences over the status and autonomy of the breakaway territories. However, for local elections to be held, Russia and the separatists would have to cooperate by completely observing the cease-fire, removing heavy weaponry from the front lines and granting Organization for Security and Co-operation in Europe observers access to the warzone.
If Russia followed through with such measures, the West could seriously consider lifting sanctions against Russia. Ukraine and the United States are likely to stress that a complete removal of Russian military and security personnel from the separatist territories and restoring control of the border to Ukraine will be required to lift sanctions and hold early elections. However, even some cooperative gestures by Moscow on security could build enough momentum for both to occur.
The rumors of a potential deal in the works may be just that - rumors. There is certainly a lot that stands in the way of an end to the conflict in Ukraine. But recent developments suggest Kiev, Moscow and the West could be more open to advancing negotiations in the coming months. They should be taken seriously.
Lead Analyst - Eugene Chausovsky