EU sanctions defy Russia warning

Ukraine crisis: EU to adopt new Russia sanctions soon

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The EU says new sanctions against Russia should be adopted shortly and take effect on Tuesday, despite a Kremlin warning of retaliation.

But an EU spokeswoman said the sanctions would be "reversible", depending on the situation in Ukraine.

Pro-Russian separatists and government troops are observing a fragile truce.

Ukraine's President Petro Poroshenko has arrived in the strategic port city of Mariupol, parts of which have been shelled as rebel forces edge closer.

Announcing his arrival in a tweet, Mr Poroshenko said: "We won't hand over this Ukrainian land to anyone!"

The separatists have recently made big gains in eastern Ukraine. But a ceasefire agreed on Friday appears to be holding despite some sporadic shooting.

Fighting in the east has killed some 2,600 people since April.

A building in Mariupol witnesses said was hit at the weekend

Major state-owned oil firms including Rosneft are on the new EU sanctions list, but gas is not affected, diplomats say. US sanctions already target Rosneft.

Russia has warned that it could block international flights through its airspace if the EU goes ahead with new measures over the Ukraine conflict.

Russia has repeatedly denied accusations by Ukraine and the West that it has been sending troops into Donetsk and Luhansk regions to help the rebels, who want to establish an independent state.

Donetsk airport has been the scene of constant battles between rebels and government forces

Analysis: Andrew Walker, BBC economics correspondent

Rosneft calls itself the leader of the Russian petroleum industry. That makes it a very important player in the European Union's energy market. About 90% of the crude oil used in the EU is imported and Russia is, by a large margin, the biggest supplier.

The sanctions don't appear to directly affect that relationship. They would prevent Rosneft raising money in European financial markets.

But as crude oil is mainly transported by sea, if the trade were disrupted any losses from Russian suppliers could potentially be replaced. It would almost certainly be more expensive, but it could be done, up to a point.

Gas is another story, which may explain why Gazprom's main business is reported not to be on the new sanctions list. Russian gas is delivered to Europe by pipeline. There is a trade in gas transported by sea, but it would be very difficult to compensate for a major disruption of supplies from Russia.

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