The EU is preparing further sanctions against Russia for backing Ukraine's separatists, who are accused by the West of shooting down a Malaysia Airlines passenger plane.
The West has so far refrained from "sectoral sanctions", also known as Level Three sanctions, that would target entire sectors of Russia's economy. As a result, companies in Russia's crucial energy sector can still do business with Western partners, but they will probably find it harder to get Western loans.
The EU is planning to expand its list of Russian officials, businessmen and entities under asset freezes and travel bans.
Its targets will be those considered "materially or financially supporting actions undermining or threatening Ukraine's sovereignty, territorial integrity and independence".
The list of names will be released by the end of July. It means the EU will probably follow the US lead in targeting more individuals in President Vladimir Putin's inner circle, as well as some major companies.
An asset freeze means not only bank accounts and shares but also economic resources such as property. So somebody on the list is not allowed to buy or sell their assets in the EU, once the freeze is in force.
The travel ban means preventing that person entering an EU country, even if the person is in transit. They would be placed on a visa blacklist.
There are however some exemptions. Diplomatic immunity still has to be respected, so diplomats can be exempted. A targeted individual may also be exempted on humanitarian grounds, for example if he/she needs to pay for medical treatment. An EU Council document defines the scope of such sanctions.
Previously the EU has focused on individuals and a handful of entities directly linked to the Russian annexation of Crimea and the separatist uprising in eastern Ukraine.
The most senior Russian official targeted by the EU so far is Vyacheslav Volodin, the Kremlin deputy chief of staff. He is also on the US list. Some top Russian generals are also under EU sanctions now.
The EU is also considering whether to impose an arms embargo on Russia. UK Prime Minister David Cameron is pushing for that now. There has been much criticism of France's decision to go ahead with the sale of two Mistral helicopter carriers to Russia. On 21 July France said it could halt delivery of the second warship, depending on Moscow's attitude over Ukraine.
The US sanctions affect powerful people close to President Putin - some of Russia's richest businessmen.
Among them is Gennady Timchenko, a founder of the commodity trading firm Gunvor. He owns Volga Group, an investment firm with stakes in energy, transport and infrastructure, including Novatek, Russia's second biggest gas producer.
Igor Sechin is another big name on the US list. He is a former intelligence officer and long-term ally of Mr Putin, the most prominent of the "siloviki" ("tough guys") who influence Kremlin policy.
Mr Sechin is chairman of the huge state-owned oil firm Rosneft, which has energy partnerships with ExxonMobil and the UK's BP.
Mr Putin himself is not on the list - why? Western leaders do not want to treat Russia as an international pariah - they still want to be able to meet Mr Putin face-to-face. If he were on the sanctions list it would become harder to put direct diplomatic pressure on him. The West still needs Russian co-operation on a huge range of issues, including Iran and North Korea.
Last week the US expanded its list to include more Russian businesses - including Rosneft and Novatek - as well as Gazprombank, part of the Gazprom state conglomerate. A Russian state bank dating back to the Soviet era - Vnesheconombank - is also on the list.
The famous Kalashnikov arms firm is there too, as are the unrecognised, self-styled "people's republics" established by the separatists in Ukraine's Donetsk and Luhansk regions.
