Tags: Russia

Ukraine said Russian tanks had flattened a small border town and pro-Russian rebels had made fresh gains in its east, as EU leaders signaled on Saturday they would threaten more sanctions against Moscow over the crisis.

Germany's economy ministry will approve the sale of utility RWE's (RWEG.DE) oil and gas unit DEA to a Russian investor despite tensions between Russia and the West over theUkraine crisis, two people familiar with the matter said.

According to the sources cited by the Associated Press, the new measures would include a ban on the sale of dual use and sensitive technologies and an arms embargo. The measures were clearly geared to restrict Russia's defense and energy industries, of which both have proven lucrative for the country.