Brussels has revealed sanctions on Moscow will remain in place until Russian soldiers "unconditionally withdraw," from Ukraine, rejecting Russia's request to waive EU restrictions on a vital agricultural bank as part of a partial ceasefire.

The European Commission's declaration on Wednesday came after the United States announced a ceasefire with Russia and Ukraine over energy infrastructure and the Black Sea.

The Kremlin then stated that the accord was contingent on lifting sanctions, particularly those placed on Rosselkhozbank, a bank that finances grain production and exports, and reconnecting it to the worldwide Swift banking messaging system.

Anitta Hipper, the European Commission spokesperson for foreign affairs, told the Financial Times that the amending or removal of sanctions is incumbent on the "end of the Russian unprovoked and unjustified aggression in Ukraine and unconditional withdrawal of all Russian military forces from the entire territory of Ukraine."

The commission has also disputed Russian claims that its sanctions on Moscow have limited food and fertilizer shipments, a politically delicate issue given their importance to poorer countries.

Hipper claimed the EU supported efforts for "enhancing global food security. EU sanctions are not targeting trade in agricultural goods, including food, grain and fertilisers, in any way, between Russia and third countries."

Earlier Tuesday, a Russian negotiator stated that Russia would continue its "useful" discussions with the United States regarding the Ukraine conflict, with plans to involve the United Nations and other nations in future talks.

In an address posted to social media on Sunday evening, Zelensky noted that any diplomatic progress depends on decisive action from the Kremlin. "No matter what we talk about with our partners, we need to push Putin to give a real order to stop the strikes: the one who brought this war must take it away," he said. 

Delegations from Ukraine and the United States were meeting in Riyadh late Sunday, with discussions centered on a potential ceasefire arrangement focused on the Black Sea. Separate talks between Russian and American officials are scheduled for Monday, according to sources familiar with the diplomatic process.

While Washington and Kiev have proposed a complete and unconditional ceasefire lasting 30 days, the Kremlin has dismissed the offer. Instead, Putin has reportedly agreed only to a limited pause in aerial attacks targeting Ukraine’s energy sector.

Russia conditions Black Sea truce with annulment of sanctions

Russia announced on Tuesday that a US-mediated deal to halt military activity in the Black Sea would only take effect if certain sanctions were lifted, particularly those targeting its state-owned agricultural bank.

Earlier, the White House announced that both Russia and Ukraine had agreed to cease hostilities in the Black Sea following separate talks in Saudi Arabia. However, Washington made no mention of lifting sanctions, instead emphasizing efforts to restore "access to the world market" for Russian agricultural and fertilizer exports.

The Kremlin, however, insisted that the ceasefire would only be implemented once restrictions on Rosselkhozbank and other financial institutions involved in global food and fertilizer trade were removed. It also called for these banks to be reconnected to SWIFT, the international payment network from which several Russian banks have been excluded due to Western sanctions.

Although Western governments have not directly sanctioned Russian agriculture, Moscow has long argued that restrictions on shipping insurance and financial transactions have obstructed its exports.

Additionally, the Kremlin said it had reached an understanding with the US on the logistics of a 30-day energy ceasefire announced by President Vladimir Putin last week.

"Russia and the US agreed to develop measures to implement the agreements of the presidents of the two countries to ban strikes on Russian and Ukrainian energy facilities," the Kremlin stated.