The European countermove involves a plan whose implementation would be overseen under the leadership of US President Donald Trump, according to Bloomberg's sources.
The plan proposes a ceasefire that freezes the positions along the current battle lines.
Trump has urged the parties to end the fighting and "stay where they are" at present, but has also, more in line with Putin's wishes, claimed that eastern Ukraine should be "divided up".
According to the European proposal, a ceasefire would initially be followed by the return of all Ukrainian children who have been forcibly deported to Russia, as well as the exchange of prisoners, Bloomberg reports.
Ukraine would further be given security guarantees, funding for reconstruction and a fast track to EU membership. At the same time, the sanctions against Russia would be gradually lifted. However, a certain amount of frozen Russian central bank funds would only be repaid if Moscow agrees to contribute to the reconstruction of Ukraine.
Although the plan involves negotiations based on the current battle lines, neither Ukraine nor its allies in Europe will legally recognize occupied territory as Russian, according to Bloomberg's sources. On the other hand, the plan is said to open up for negotiations between Kyiv and Moscow on how occupied territory should be governed.
The sources emphasize that they are still working on the details of the plan, and that they may change.
