Ukraine claims more territory as fight intensifies with rebels

Further sanctions

Ukraine crisis

The downing of the Malaysian airliner has led to calls for much tougher action against Russia from Western countries who had previously imposed sanctions but only on small numbers of individuals and firms.

European Union member states were expected to try to reach a final deal on Tuesday on stronger measures that would include closing the bloc's capital markets to Russian state banks, an embargo on future arms sales and restrictions on energy technology and technology that could be used for defence.

The EU added new names on Friday to its list of individuals and companies facing travel bans and asset freezes over their alleged involvement in Ukraine. It could agree to extend the list further as early as Monday.

Germany, which had been reluctant to agree tougher sanctions because of its trade links with Russia, said the downing of the airliner meant such measures were now necessary.

The leaders of Britain, France, Germany, Italy and the United States agreed on Monday that they would take further measures against Russia over Ukraine, France said.

Russia played down the impact of sanctions.

"We can't ignore it. But to fall into hysterics and respond to a blow with a blow is not worthy of a major country," Foreign Minister Sergei Lavrov said.

Washington says Moscow has stepped up its support for the rebels since the plane was shot down, including sending more heavy arms and firing across the frontier. The Russian Defence Ministry cast doubt on pictures Washington said showed Russia had shelled Ukrainian military positions.