The European Union on Wednesday announced it would widen its sanctions against Russia over Ukraine where fighting in the east continued and an attempt to restart talks failed.

The EU will broaden its sanctions to make it possible to target companies deemed to threaten Ukraine’s territorial integrity, diplomats said, adding that a formal decision would be taken by EU leaders at a summit that begins later on Wednesday in Brussels.

Diplomats said that the leaders would only agree to the concept and leave the details to the bloc’s foreign ministers.

While the US has blacklisted 15 Russian companies over Ukraine, the EU has largely limited its sanctions to individuals from Russia and Ukraine whom it accused of aiding the annexation of Crimea or the separatist uprising in the Donbass area.

It has hit only two companies with sanctions - Chornomornaftogaz and Feodosia - two energy companies in Crimea that were effectively “confiscated” following the Black Sea peninsula’s annexation by Russia.

Germany on Wednesday reiterated its accusation that Russia was not doing enough to solve the conflict between pro-Russian separatists and Ukrainian government.

“The possible consequences of the disappointed expectations will be discussed at today’s European Council meeting,” German government spokesman Steffen Seibert said in Berlin.

Ukrainian President Petro Poroshenko complained to Chancellor Angela Merkel that Russia continued to funnel weapons and militants into eastern Ukraine, his office said after a phone call between the two leaders late on Tuesday.

In eastern Ukraine, the fighting continued. The de-facto defence minister of the self-proclaimed “Donetsk People’s Republic, Igor Strelkov, said that two of his fighters were killed and 15 injured when they attempted to cut off government forces from the Russian-Ukrainian border east of Donetsk.

He said that the operation was not successful because the “opponent’s forces were too strong,” according to Russian news agencies.

Strelkov, whose real surname is Girkin, also said that he introduced martial law and a curfew in the city of Donetsk.

Meanwhile, Russia, Ukraine and the Organization for Security and Co-operation in Europe (OSCE) said that efforts to restart talks aimed at resolving the conflict foundered because of a lack of will by the separatists.

A video conference with separatist leaders scheduled for Tuesday did not materialize despite being agreed upon at the highest international level, the three members of the so-called Trilateral Contact Group said.

Poroshenko told Merkel that there had been two attempts to hold a video conference on Tuesday. The German chancellor has been urging a restart of the talks.

The contact group consists of representatives for Russia, Ukraine and the OSCE. Ukraine is represented by former president Leonid Kuchma because the government in Kiev rejects any direct negotiations with the separatists.

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