BRUSSELS, Feb 22 — The EU said today it wants to target banks financing Russian operations in Ukraine’s separatist territories following Moscow’s recognition of their independence, and hit Moscow’s access to European financial markets.

The proposed sanctions — which also include blacklisting officials and hitting trade with the breakaway regions — will be formally submitted later today, said a statement from EU chiefs Ursula von der Leyen and Charles Michel. 

The measures have to be approved by all 27 EU members states.

"The EU has prepared and stands ready to adopt additional measures at a later stage if needed in the light of further developments,” the statement added. 

It detailed four areas to be hit by the initial sanctions package.

It said it would target "those who were involved in the illegal decision” and "trade from the two breakaway regions to and from the EU”.

In addition, it was aimed at banks "financing Russian military and other operations in those territories”. 

And it said it would "target the ability of the Russian state and government to access the EU’s capital and financial markets and services, to limit the financing of escalatory and aggressive policies”.

Russian President Vladimir Putin yesterday sought once again to redraw his neighbour’s border by recognising two Kremlin-backed territories in eastern Ukraine as independent.

Putin has ordered troops into the separatist regions. — AFP