Rebel-controlled regions of eastern Ukraine have been granted self-rule and fighters given an amnesty, under a new law adopted by the parliament.
The actions are in line with the September 5 ceasefire agreement signed by President Petro Poroshenko.
The amnesty affects rebels in Donetsk and Luhansk regions, but does not cover the shooting down of the MH17 plane.
Western leaders believe rebels shot down the Malaysia Airlines jet with a Russian missile in July.
Ukraine and the West accuse Russia of backing the rebels with soldiers and heavy weapons. Russia denies doing so.
At least 3,000 people have been killed in the conflict and more than 310,000 internally displaced in Ukraine, the UN says.