Ukraine crisis: EU and US prepare tighter Russia sanctions

Western countries are preparing to tighten sanctions on Russia over its action in Ukraine, US and British officials say.

Targets would include Russia's defence industry, state-owned banks and associates of President Vladimir Putin.

Peace talks including Ukraine, Russia and pro-Russia rebels are due to start in Belarus on Friday.

The West accuses Russia of sending arms and troops to back the rebels in eastern Ukraine. Moscow denies this.