TALKS AND DIPLOMACY

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

* 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.

* United States and Russia both head to India to lobby its government, which has called for a ceasefire but not condemned Russia's invasion.

FIGHTING

* British military intelligence says Russian units suffering heavy losses have been forced to return to Belarus and Russia to reorganise and resupply.

* Residential areas of Ukraine's eastern city of Lysychansk were shelled by heavy artillery, the regional governor said.

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

* 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.

* 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.

* "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.

(Compiled by Andrew Cawthorne and Stephen Coates)