"The idea of creating a demilitarised Ukraine like Austria with its own army could be seen as a compromise," a Kremlin spokesperson said on Wednesday, per Reuters citing RIA news agency.

"There will be personal sanctions on the leaders of unfriendly countries," the spokesperson added and noted that the issue of sanctions is currently being discussed in talks with Ukraine.

Market reaction

Risk flows continue to dominate the financial markets after these comments and the Euro Stoxx 600 Index was last seen rising 2% on a daily basis.