So it kinda seems it might get bloody as i doubt Ukrainian government will give any land freely, while i also doubt Russia will let their people get arrested or anything.

I think the problem is that Ukrainian government thinks it can control everyone and Russia thinks that it's authority is legal in Ukraine simply because of the existence of ethnic Russians there and possibly USSR legacy.

I think Ukraine could have avoided all of this if they had kept their nuclear weapons. Nuclear armed countries are taken more seriously.