US preparing additional Russia sanctions with EU

(NEWPORT) - The United States is preparing fresh sanctions against Russia over the Ukraine crisis in coordination with Brussels, which plans to announce further punitive measures on Friday, a White House official said.

"We work on this in coordination with the Europeans," Deputy National Security Advisor Ben Rhodes said on Thursday, adding: "If Russia escalates (in Ukraine), we are prepared to escalate our pressure."

US Secretary of State John Kerry said President Barack "Obama is very committed to moving on the next tranche of sanctions".

Washington has taken the lead in imposing tough sanctions on Moscow, targeting economic sectors and close associates of Russian President Vladimir Putin.

The European Union has followed suit, after some reluctance given the bloc's close trade ties with Russia.

At a summit at the end of August, the EU agreed to impose further sanctions in response to a sharp escalation of violence in eastern Ukraine, where NATO reported the presence of a 1,000 Russian troops and a huge inflow of heavy military equipment.

Since then, the pro-Moscow rebels have managed to reverse many government army gains and even threatened to open up new fronts in a war that has cost some 2,600 lives.

On Thursday, there appeared to be some progress towards a ceasefire in the region after Putin unveiled a new peace plan. But leaders at a NATO summit were extremely cautious as previous Russian overtures have failed to halt the fighting.

French President Francois Hollande called for a "real ceasefire" that would lead to a broader political agreement, with the EU sanctions to be approved on Friday "if there has been no progress".

"Everything will depend on the next few hours," Hollande said. A British government source insisted the sanctions were sure to go ahead as planned.