The Group of Seven rich countries agreed Saturday to impose new sanctions on Russia over the crisis in Ukraine.

The Group of Seven rich countries agreed Saturday to impose new sanctions on Russia over the crisis in Ukraine.

The G7 nations, in a joint statement, said they would "move swiftly to impose additional sanctions on Russia," with an informed source saying the new US sanctions could come as early as Monday.

The G7 statement praised the "restraint" with which the new government in Kiev had acted in dealing with the pro-Russian gunmen who have seized official buildings in the east of Ukraine.

Earlier German Chancellor Angela Merkel said EU foreign ministers would meet soon to discuss the issue after speaking by conference call with US President Barack Obama, British Prime Minister David Cameron, French President Francois Hollande and Italian Prime Minister Matteo Renzi.

The G7 also includes Canada and Japan.

Meanwhile, Ukrainian authorities ratcheted up military operations against separatist activists in the east.

The United States and the European Union have already targeted Russian President Vladimir Putin's inner circle with visa and asset freezes and imposed sanctions on a key Russian bank.

Western leaders have repeatedly threatened to hit Russia with measures aimed at the wider economy.

However Obama has signaled the new sanctions will not involve an attempt to target key areas of the Russian economy such as mining, energy and the financial sectors.