Russia announces partial withdrawal of troops from the Ukraine border, while NATO advises caution.

• The Russian government has announced that Moscow is withdrawing troops from the Ukrainian border and returning them to their bases.
• Russian Ministry of Defense spokesman Igor Konashenkov announced that troops who were recently positioned near the Ukrainian border have started returning to their military bases.
• Western officials and Ukraine's president have advised caution when accepting Russia's statements as true.
• The move could indicate a significant loss for Putin, according to Timothy Ash, senior emerging markets sovereign strategist at BlueBay Asset Management.

Moscow is withdrawing some troops from the Ukrainian border, according to the Russian government, but Ukraine's president and Western officials are urging caution about believing Russia's statements.

Igor Konashenkov, a spokesman for the Russian Ministry of Defense, announced on Tuesday that troops that had been stationed in Russia's southern and western military districts, which border Ukraine, had finished their military exercises and were now loading onto trains and trucks to be transported to their military bases.

Russian troops participating in military drills in neighboring Belarus, which borders Ukraine to the north, will return to their permanent bases upon the conclusion of the exercises on Feb. 20, as announced by Konashenkov.

Ukrainian Foreign Minister Dmytro Kuleba stated on Tuesday that Ukraine follows a rule of not believing what it hears, but rather what it sees. If a real withdrawal occurs following these statements, Ukraine will believe in the beginning of a real de-escalation.

During a call with reporters on Tuesday, Julianne Smith, President Biden's Ambassador to NATO, dismissed the Kremlin's assertion.

Smith stated that they would have to verify the claim and examine the facts on the ground, as there were similar claims in late December from Moscow that they were de-escalating, but the evidence did not support this claim. She emphasized the need to examine the situation closely and verify the information in the days ahead.

Last week, thousands of Russian troops commenced military exercises, which were perceived as a show of power by Moscow. This occurred after more than 100,000 soldiers, tanks, missiles, and blood supplies were relocated to Russia's border with Ukraine.

The U.S. and its allies are closely monitoring the exercises.

Mr. Putin has enhanced military capabilities along the border with Ukraine and in Belarus, according to Kirby. He is also deploying some of his ground and naval units in the south and the Black Sea, respectively.

Kirby stated, "He is continually increasing his readiness, considering a military path here. If he decides to pursue this path, he is taking the necessary steps to prepare for it."

Despite warnings from Western countries that an invasion of Ukraine is imminent, Moscow has consistently stated that it has no plans to invade Ukraine.

According to Reuters, Russian President Vladimir Putin stated during a press conference on Tuesday that there is room for additional talks with the West regarding the situation in Ukraine. He emphasized that Russia had made the decision to partially withdraw its troops from the border.

The Kremlin dismissed U.S. warnings that Moscow would launch an attack on Wednesday as "baseless hysteria," stating that tensions had been heightened by a massive buildup of Ukrainian forces and Western claims that war was imminent, according to Reuters.

The issue at Ukraine's border is a long-term problem.

On Tuesday, Russian lawmakers voted to request Putin to recognize two Russian-backed breakaway regions in eastern Ukraine as independent. The ongoing conflict in the Donbas region, which has resulted in the deaths of approximately 13,000 people, was referred to as "genocide" by Putin at a news conference on Tuesday.

On Tuesday, Russian envoy to the EU Vladimir Chizhov stated that Russia will not invade Ukraine unless there is provocation.

If the Ukrainians attack Russia, it's possible that we will respond with a counterattack, as stated by the TASS news agency. Similarly, if they begin killing Russian citizens in Donbas or any other location, it should not come as a surprise.

‘No sign of de-escalation’

Jens Stoltenberg, NATO chief, expressed cautious optimism about the situation in Ukraine during a news conference on Tuesday, but stated that the military alliance had not observed any evidence of de-escalation from the Russian side on the ground.

Since the Cold War, Russia has accumulated an unprecedented military presence in and around Ukraine, which could lead to a new attack. However, Russia has the opportunity to avoid conflict and work towards a peaceful resolution by ceasing its preparations for war.

Stoltenberg stated that Russia has not responded to NATO's meeting request to discuss the current situation, and any Russian action into Ukraine would be a violation of international law.

Russia's ongoing efforts to destabilize Ukraine, including its annexation of Crimea in 2014 and support of Russian separatists, as well as its current troop buildup along the Ukrainian border and near NATO territory, may require the organization to make long-term security adjustments.

Biden's Secretary of Defense Lloyd Austin is traveling to the NATO alliance headquarters in Brussels to meet with defense ministers for two days before heading to NATO's eastern flank.

The Foreign Office of the U.K. stated through a spokesperson that Britain will evaluate the Russians based on their actions rather than their words.

Win for the West?

According to Timothy Ash, senior emerging markets sovereign strategist at BlueBay Asset Management, if Putin has truly conceded, this would be a significant victory for Biden, Zelenskyy, and the West. However, it would be challenging to view the entire situation as anything other than a major defeat for Putin.

He succeeded in bringing the West back together under NATO's common purpose, and affirmed and strengthened Ukrainian sovereignty.

Due to Russia's aggressive actions, Ukraine's military has become better equipped and more capable of defending itself, according to Ash.

"Russia has been criticized as an untrustworthy energy provider, prompting the West to increase its efforts to reduce its dependence on Russian energy sources," he stated. "Some will argue that Putin was the Russian leader who lost Ukraine. His legacy will be defined by how he accelerated Ukraine's alignment with the West," he added.

Diplomacy ‘far from exhausted’

On Monday, in a televised exchange, Sergey Lavrov informed Putin that there are still many options available for the Kremlin to obtain the security guarantees it needs, including diplomacy, which have not yet been fully explored.

Lavrov proposed continuing diplomatic discussions, but emphasized, "We have repeatedly warned that we won't tolerate prolonged negotiations on issues that require immediate resolution."

Since 2002, Ukraine has sought membership in NATO, the world's most powerful military alliance. However, Russia has made it clear that it does not want Ukraine to become a member and has called for NATO to withdraw its presence from Eastern Europe. The group's Article 5 clause states that an attack on one member country is considered an attack on all of them.

Russia's request for accommodation cannot be granted by the U.S. and NATO.

On Monday, Zelenskyy addressed the Ukrainian population and stated that Ukraine desires to resolve all issues through negotiations. However, he emphasized that Ukraine has the capability to defend itself with its "great army" that possesses "unique combat experience and modern weapons."

On Tuesday, the White House announced that Biden had a conversation with French President Emmanuel Macron, following his call with U.K. Prime Minister Boris Johnson.

If Russian aggression escalated, a significant package of sanctions, including reducing European countries' reliance on Russian gas, would be imposed, as agreed upon by Biden and Johnson.

Over the weekend, Biden had separate phone conversations with Zelenskyy and Putin.

During the call with Zelenskyy, Biden pledged the U.S.'s dedication to safeguarding Ukraine's sovereignty and territorial wholeness.

The president cautioned his Russian counterpart that if Ukraine is invaded again, the U.S. and its allies will impose swift and severe consequences. Biden stated that while the U.S. is ready to engage in diplomacy, it is also prepared for other scenarios.

The Organization for Security and Cooperation in Europe (OSCE) will hold talks in Moscow on Tuesday between Russian Foreign Minister Sergei Lavrov and the OSCE's chairperson-in-office from Ukraine, Mikko Kinnunen, who is also the current chairman of the OSCE.

On Monday, German Chancellor Olaf Scholz met with Zelenskyy in Kyiv, and on Tuesday, he is scheduled to meet with Putin in Moscow.

Although Russia maintains that it has no plans to invade Ukraine, the US and its allies are concerned that an invasion could occur "any day now." In response, Secretary of State Antony Blinken ordered the US Embassy in Kyiv to close on Monday and move staff to Lviv in western Ukraine.

CNBC’s Amanda Macias contributed to this report from Washington.