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EU set to widen sanctions on Russia over Ukraine EU set to widen sanctions on Russia over Ukraine
(about 1 hour later)
The European Union is set to agree new sanctions against Russia, targeting its finance, energy and defence sectors over the conflict in Ukraine.The European Union is set to agree new sanctions against Russia, targeting its finance, energy and defence sectors over the conflict in Ukraine.
Top Russian individuals and bodies are already the subject of EU sanctions for their alleged role in Ukraine's crisis.Top Russian individuals and bodies are already the subject of EU sanctions for their alleged role in Ukraine's crisis.
Calls for the EU to act have been fuelled by the downing of Flight MH17.Calls for the EU to act have been fuelled by the downing of Flight MH17.
An international team has still failed to access the crash site in eastern Ukraine, amid heavy fighting between government forces and rebels there.An international team has still failed to access the crash site in eastern Ukraine, amid heavy fighting between government forces and rebels there.
The team, which includes Dutch and Australian police officers, is expected to make its third consecutive attempt to reach the site on Tuesday.The team, which includes Dutch and Australian police officers, is expected to make its third consecutive attempt to reach the site on Tuesday.
Many of the 298 people travelling aboard Flight MH17 - a Malaysian Airlines passenger jet - were of Dutch or Australian nationality.
Analysis by the BBC's Gavin Hewitt
Europe's leaders did not want to move to economic sanctions but they were moved by two considerations: the outrage at the way investigators have been blocked from access to the crash site of the downed plane and, secondly, the fact that Russia, since the incident, has been allowing heavy weapons across the border into Ukraine.
The calculation in Europe is that it had to act for its own credibility and that it may have to go further to ensure that President Vladimir Putin and his inner circle understand that their actions carry consequences.
How will Russia respond? Hard to say, although Foreign Minister Sergei Lavrov said Russia would not retaliate or "fall into hysterics".
But - if all goes as expected - the EU will today take a significant step; that it has to risk some damage to its own economic interests in order to put pressure on President Putin and Russia.
Ukraine's army said on Monday it had managed to capture two towns near the wreckage in its bid to win back territory from the hands of the rebels.Ukraine's army said on Monday it had managed to capture two towns near the wreckage in its bid to win back territory from the hands of the rebels.
Skirmishes continued overnight around the town of Shakhtarsk, with the Ukrainian military attempting to encircle pro-Russians fighters who have seized territory in the area. Skirmishes continued overnight around the town of Shakhtarsk, with the Ukrainian military attempting to encircle pro-Russians fighters in the area.
'Further costs''Further costs'
EU ambassadors are expected to agree fresh sanctions against Russia at a meeting in Brussels on Tuesday.EU ambassadors are expected to agree fresh sanctions against Russia at a meeting in Brussels on Tuesday.
The measures are expected to include restrictions on Russian banks accessing European markets, an arms embargo and curbs on dealings with the energy sector.The measures are expected to include restrictions on Russian banks accessing European markets, an arms embargo and curbs on dealings with the energy sector.
On Monday, a spokeswoman for UK Prime Minister David Cameron said that he and fellow European leaders had agreed to "impose further costs on Russia" for arming the rebels in Ukraine.On Monday, a spokeswoman for UK Prime Minister David Cameron said that he and fellow European leaders had agreed to "impose further costs on Russia" for arming the rebels in Ukraine.
Western nations have also said there is growing evidence that Flight MH17 - a Malaysia Airlines passenger jet - was hit by a Russian-supplied missile fired by the rebels. Western nations have also said there is growing evidence that Flight MH17 was hit by a Russian-supplied missile fired by the rebels.
Russia has denied supplying heavy weapons to the rebels. Russia and the rebels blame Ukrainian government forces for the attack on the airliner.Russia has denied supplying heavy weapons to the rebels. Russia and the rebels blame Ukrainian government forces for the attack on the airliner.
Any new EU sanctions could come into force within 24 hours of a deal being reached between the EU's 28 member states.Any new EU sanctions could come into force within 24 hours of a deal being reached between the EU's 28 member states.
However, UK company British Petroleum, which owns nearly 20% of Russian state oil giant Rosneft, has warned that further sanctions against Russian could "adversely impact" its performance. The warning came in its latest profits report.However, UK company British Petroleum, which owns nearly 20% of Russian state oil giant Rosneft, has warned that further sanctions against Russian could "adversely impact" its performance. The warning came in its latest profits report.
Last weekend, the EU added 15 individuals and 18 entities to its sanctions list targeting Russians linked to the separatist uprising in eastern Ukraine.Last weekend, the EU added 15 individuals and 18 entities to its sanctions list targeting Russians linked to the separatist uprising in eastern Ukraine.
They included the Federal Security Service (FSB) and foreign intelligence heads, and the president of Chechnya.They included the Federal Security Service (FSB) and foreign intelligence heads, and the president of Chechnya.
The number of Russians subject to EU asset freezes and travel bans is now 87. Two Crimean energy firms were joined on the list by 18 other entities.The number of Russians subject to EU asset freezes and travel bans is now 87. Two Crimean energy firms were joined on the list by 18 other entities.
On Monday, UN human rights chief Navi Pillay said the downing of MH17 could constitute a war crime. She demanded a "thorough, effective, independent and impartial investigation" into the "shooting down" of the jet.On Monday, UN human rights chief Navi Pillay said the downing of MH17 could constitute a war crime. She demanded a "thorough, effective, independent and impartial investigation" into the "shooting down" of the jet.
Ms Pillay spoke as the latest UN report on Ukraine said at least 1,129 people had been killed and 3,442 wounded in the Ukraine conflict since mid-April.Ms Pillay spoke as the latest UN report on Ukraine said at least 1,129 people had been killed and 3,442 wounded in the Ukraine conflict since mid-April.
The conflict has displaced more than 200,000 people, many of whom have fled east to neighbouring Russia.The conflict has displaced more than 200,000 people, many of whom have fled east to neighbouring Russia.