The European Union may impose a travel ban on Russian Defence Minister Sergei Shoigu as part of a new package of sanctions targeting Moscow over the crisis in Ukraine, sources said Thursday.

The 28-nation bloc is set to decide by Friday on fresh economic and other measures against Russia over allegations that it has sent troops and weapons to support Ukrainian rebels.

"The minister's name was discussed" by ambassadors in Brussels who are considering the sanctions, the European source told AFP, referring to Shoigu. A second diplomatic source also confirmed that the Russian defence minister was being considered.

In total, the EU is looking at imposing travel bans and asset freezes on another 20 people close to Russian President Vladimir Putin, several sources said.

Western powers have accused Russia of sending troops to back a counter-offensive by pro-Kremlin rebels in the latest stage of a five-month conflict that has claimed nearly 2,600 lives. Moscow denies the charge.

The United States is also preparing fresh sanctions against Russia in coordination with Brussels, a White House official said at the NATO summit in Wales on Thursday.

European leaders ordered officials at a summit on Saturday to draw up new sanctions within one week, and incoming EU diplomatic chief Federica Mogherini said they would decide on the measures on Friday.

They are expected to reinforce existing sanctions targeting Russia's financial services, the sale of arms and "dual-use" goods that can have both military and civilian roles, and oil industry technology.

British government sources said Thursday that the proposals would extend this to more state-owned defence and energy companies, although not Russia's sensitive gas industry, on which Europe depends for much of its energy.

"We are looking towards seeking to adopt a package of sanctions tomorrow," a British source said.

There was "agreement in principle" on the package during the EU ambassadors' talks on Thursday, but some issues such as dual-use goods still needed to be discussed in detail, an EU diplomat said.

They will hold further talks on Friday afternoon at which they will try to reach a final agreement, the diplomat added.

Russian forces near Ukraine 'more lethal' than ever: US
Washington (AFP) Sept 04, 2014 - Russian forces deployed near Ukraine's eastern border are "more lethal" than before and heavily armed with artillery and air defense weaponry, the Pentagon said Thursday.

"The force that we see arrayed on the border is exceptionally capable, probably more capable, more lethal than anything that we've seen up until now," spokesman Colonel Steven Warren told reporters.

The Russian contingent now had "higher concentrations" of field artillery, rockets, anti-aircraft systems, as well as engineers and other troops providing logistical and other support to combat forces, he said.

"It is a capable armed force that we are very concerned about," Warren said.

But the overall number of Russian troops along the Ukraine border had not increased and remained at roughly 10,000, he added.

His comments came as the conflict in Ukraine dominated a summit of NATO leaders in Britain, with calls for the alliance to offer more help to Kiev's military and to deploy troops in former Soviet bloc states that are now NATO members.

Ukraine's President Petro Poroshenko predicted a ceasefire deal would be agreed Friday that would end violence between his government and pro-Moscow separatists backed by Russia.

NATO has accused Moscow of sending hundreds of troops into Ukraine in what it calls the most serious threat to security in Europe since the Cold War.

NATO sees Russia's March annexation of Crimea from Ukraine as a violation of the 1997 NATO-Russia Founding Act which fixed Europe's post-Cold War borders and prohibited the use of force to change them.

Since the crisis erupted in March, the United States has provided about $70 million in "non-lethal" aid to Ukraine's security forces but it has so far opted against sending arms to Kiev.