Western countries are preparing to tighten sanctions on Russia over its action i

n Ukraine, US and British officials say.

Targets would include Russia's defence industry, state-owned banks and associate
s 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.
A UK government official said the European Union would announce - jointly with t
he US - sanctions on Friday, including more restrictions on Russian banking, ene
rgy and defence.
More of what the official dubbed "Putin cronies" would have travel bans imposed
on them.
"We will keep the pressure on Putin to force him to the negotiating table and of
f the battlefield," the official said.
Deputy White House National Security Adviser Ben Rhodes, speaking at the Nato su
mmit in Wales, said the US was finalising new penalties.
French President Francois Hollande said European leaders would announce sanction
s on Friday "and put them into action if there is no progress [on Ukraine], but
everything will depend on the coming hours".
'Carefully optimistic'

Ukrainian President Petro Poroshenko and rebel leaders said a ceasefire could be
agreed on Friday.