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What else are they supposed to do?

work out a deal with russia (there were 2 rounds of talks and the third will be on 7th)

What has Russia to offer for such a deal, except stopping the violence?

russia could help with rebuilding ukraine if sanctions are weakened.

Grozny was rebuilt after all.

Because they feel they have a chance at a better outcome. If you don't fight there will be no negotiation with Putin. You'll just be rolled over.

Negotiation and better position at negotiation table is only possible when you fight the aggressor.