The West is a de facto belligerent, hence the sanctions from the West against Russia. You will also hear the West being referred to by Russia when they cite their reasons for going to war in the first place. The West is heavily involved in the conflict, and the West will be heavily involved in the conflict’s ending. They will be heavily involved in peace negotiations.
I accept that the relative strength of each party will make a difference when negotiating. A defeated party won’t be able to negotiate anything. But a stalemate were nobody is winning and everybody is losing could allow for flexibility in negotiation, and neither you or I know whether the blanket ban on all Russian entities doing business with the West will be up for discussion or not.
Personally, I think it will be up for discussion when it comes to the negotiation of peace, and I don’t expect the blanket ban on all Russian entities to continue indefinitely.