Moscow: Russian and Ukrainian leaders agreed Wednesday on steps needed for a ceasefire in eastern Ukraine, but Moscow cannot be party to any agreement as it is not involved in the conflict, a Kremlin spokesman said.

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"(Vladimir) Putin and (Petro) Poroshenko really did discuss steps which would lead to a ceasefire between rebels and Ukrainian troops," Kremlin spokesman Dmitry Peskov was quoted as saying by the RIA-Novosti news agency, after Ukraine`s President Petro Poroshenko announced he and Vladimir Putin had agreed to a permanent truce.

"But in principle Russia cannot agree on a ceasefire as it is not a participant in the conflict."