EUROPEAN UNION ministers agreed yesterday to step up sanctions against unnamed Russian officials in response to Moscow’s supposed failure to put pressure on eastern Ukrainian separatists.

Dutch Foreign Minister Frans Timmermans said that a “forceful decision” had imposed more visa bans and asset freezes.

Ministers had asked the European Commission to prepare more forceful economic sanctions, including some targeting arms, energy and financial sectors, if Moscow failed to stop destabilising Ukraine.

However, David Cameron was unable to persuade countries with strong trade links with Moscow to shoot themselves in the foot by breaking them.

Mr Cameron claimed that the downing of a Malaysian civilian airliner had drastically changed the situation and that the Russians could not expect continued access to European markets and capital.

Lithuanian Foreign Minister Linas Linkevicius blamed “terrorists supplied by Moscow” for shooting down the airliner and demanded an arms embargo against Russia.

However, French President Francois Hollande said that he would stand by the delivery of two warships being built for Russia in French shipyards.

He pointed out that the deal was finalised in 2011, adding: “The Russians have paid. We would have to reimburse €1.1 billion” if France cancelled the deal.

Russian President Vladimir Putin said that Moscow would do “everything in its power” to facilitate an investigation into the plane crash.

He also professed willingness to put pressure on pro-Russian rebels, but he insisted that this alone “was not enough” to resolve the situation.

The Russian leader condemned Kiev for continuing to shell the Donetsk region.

He accused Nato of bolstering its forces across eastern Europe and again questioned the legitimacy of the Ukrainian government which, he said, came to power in an armed and anti-constitutional manner.

“Yes, there were elections after the coup, but strangely, for some reason, those who either financed or carried out that coup became leaders of the government,” he said.

The euro fell last night to its lowest level against the dollar this year amid heightened fears over the economic consequences of developments in Ukraine.