European Union leaders agreed on Thursday to expand the bloc's list of people targeted with sanctions over tensions in Ukraine by 12 names and warned that further economic measures against Russia could be taken if the situation in Ukraine worsens.

At a summit in Brussels, EU leaders agreed to ask the European Commission to prepare an assessment of the potential impact of broad economic sanctions against Russia, President of the European Council Herman Van Rompuy told a news conference.

They also said the European Union could send an observer mission to Ukraine if the Organisation for Security and Cooperation in Europe fails to put forward its own mission.

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