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Michael O'Hanlon, an expert with the Brookings Institution, tells the BBC this deal "makes sense" because the situation in Russia was "extraordinarily risky" from Yevgeny Prigozhin's point of view.
"The idea that Prigozhin could somehow engender a broad-based mass revolt against Putin is really a fairly tale," O'Hanlon says.
However, it remains a "highly critical and dangerous moment" in Russia, O'Hanlon says.
Several questions also remain, including what kind of terms Prigozhin was offered and what prospects he has for staying alive, O'Hanlon says.
It's been a remarkable half hour with the sudden news that Wagner's soldiers will stop marching to Moscow.
Here's the full statement from the Wagner chief, Yevgeny Prigozhni:
"They wanted to disband the Wagner military company. We embarked on a march of justice on 23 June.
In 24 hours, we got to within 200km of Moscow. In this time we did not spill a single drop of our fighters' blood.
Now the moment has come when blood could be spilled. Understanding responsibility [for the chance] that Russian blood will be spilled on one side, we are turning our columns around and going back to field camps as planned."
Prigozhni's statement has been viewed on his Telegram channel more than three million times.
Belarus strongman Aleksander Lukashenko has conducted talks with Evgeniy Prigozhin.
As a result of the negotiations that lasted for the whole day, Prigozhin has agreed to de-escalate.
Lukashenko’s press service reports the negotiations took place with Vladimir Putin’s agreement.
“Prigozhin has agreed to stop the march towards Moscow and take further steps to de-escalate the situation,” the statement says.
As part of the agreement, Wagner fighters get security guarantees.
What else was offered to Prigozhin and mercenaries is not clear.
Russia has been using the territory of Belarus to launch attacks on Ukraine since the beginning of the invasion, effectively erasing Belarus’ sovereignty.
And any signs showing that Putin’s grip on power is weaking threatens the regime in Minsk that is heavily dependent on Moscow.
Earlier today, Svitlana Tikhanovskaya, the opposition leader who challenged Lukashenko in 2020 presidential elections, said the Wagner’s rebellion “is the best chance to kick the Russian military out from [Belarus]”.
“If we miss this chance,” she said in her video appeal, “Russia will do to us exactly what they did to Ukraine.”
Belarusian leader Alexander Lukashenko has held talks with Wagner mercenary group head Yevgeny Prigozhin during which Prigozhin agreed to stop his troops and "de-escalate the situation", Rossiya 24 news channel said.
"Prigozhin accepted Lukashenko's proposal to stop the movement of Wagner in Russian territory and on further steps to de-escalate tension," Rossiya 24 said, quoting Lukashenko's press service.
It also said it was proving "possible to find an acceptable variant of de-escalating [the situation] with security guarantees for Wagner PMC's fighters".
Rossiya 24 said the conversation had been agreed with Putin.
Wagner mercenary leader Yevgeny Prigozhin has put out a voice note on his Telegram channel saying he has has agreed to "stop" the movement of his troops who are advancing on the Russian capital.
We will bring you more updates shortly.
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