European Parliament backs economic sanctions against Russia

(BRUSSELS) - The European Parliament called on Thursday for the EU to reinforce sanctions on Russia over the Ukraine crisis and be prepared to target economic interests.

In a non-binding resolution, MEPs said the European Union should act "against Russian firms and their subsidiaries, especially in the energy sector, and Russia's EU assets," a statement said.

The text recommended that the South Stream pipeline carrying Russian gas to Europe without crossing Ukraine should not be built and other sources found.

The South Stream pipeline is due to run from Russia via the Black Sea to Bulgaria, Serbia and Hungary before it branches out into Western Europe.

In response, Bulgaria, which depends almost entirely on Russia for energy, accused its EU partners of using South Stream as a campaign tool ahead of May elections for the European Parliament.

The resolution also said MEPs were "gravely concerned about the fast-deteriorating situation and bloodshed in the east and south of Ukraine."

Russia should stop "supporting violent separatists and armed militias... as well as remove its troops" from the Ukraine border, it added.

The EU has so far imposed visa bans and asset freezes on nearly 40 Ukrainian and Russian figures, some of them very close to President Vladimir Putin.

EU leaders have threatened to go further to a "Phase 3" and impose broader economic sanctions if Moscow does not reverse course, but sharp divisions within the 28-member bloc will make it difficult to take that step.

As the crisis deepens, however, with large parts of southeast Ukraine seen at risk, demands are growing that the EU take more forceful action, even if it harms the bloc's own economic interests.

Brussels is currently discussing the possible impact of economic sanctions with member states, trying to find a balance whereby the burden will be shared by all.

French Foreign Minister Laurent Fabius suggested earlier this week there could be an emergency EU summit next week if Thursday's talks in Geneva fail to make headway.

The EU depends on Russia for some 30 percent of its gas supplies, while Germany and many other states have important economic ties with Russia.