Ukraine conflict: EU implements fresh sanctions on Russia

New EU sanctions against Russia will take effect on Friday, blocking loans for five big state banks and curbing EU business with oil and defence firms.

The aim is to keep pressure on Russia over its role in the Ukraine crisis. But the measures could be eased or lifted if a ceasefire in Ukraine holds.

Russia says it is preparing a response. One top Russian official said cars imported from the EU could be targeted.

Nato says Russia still has about 1,000 heavily armed troops in east Ukraine.

Laura Westbrook reports.