(QHA) -

European Union leaders will work to block loans for new projects in Russia by two multilateral lenders and broaden the scope of other sanctions in response to Moscow's actions in Ukraine.

According to a draft statement seen by Reuters, EU leaders, who are meeting in Brussels on July 16, will ask the European Investment Bank to suspend financing of new Russian public sector projects.

It says EU countries will also work together to suspend funding for new projects in Russia through the European Bank for Reconstruction and Development.

The draft statement also says the bloc will broaden the scope of asset freezes to target companies and other organizations that undermine Ukraine's sovereignty.

The text of the draft could change, however, until its final adoption.