The European Union (EU) decided to expand sanctions against Russia over Ukraine by putting more people under asset freezes and visa bans, EU foreign policy chief Catherine Ashton said on Monday.

The EU's foreign ministers, meeting in Luxemburg on Monday, discussed the Ukraine situation, demanding Russia to "call back its troops from the Ukrainian border" in a statement.

The statement published after the ministers' meeting said the preparatory work by the bloc's member states is underway on "possible targeted measures", so that further steps can be taken should events require.

It also threatened that any destabilizing steps by Russia in Ukraine "would lead to additional and far reaching consequences for relations in a broad range of economic areas."

Meanwhile, the EU also pledged to continue diplomatic engagement to deescalate the crisis and stabilise the situation.

"It is crucial that Russia and Ukraine engage in a meaningful dialogue to find a political solution," said Ashton, who will meet the foreign ministers of the United States, Russia and Ukraine Thursday in Geneva to seek the solutions of the Ukraine crisis.

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