EU diplomats will consider expanding the sanctions on Russia and include a proposal to ban all Europeans from purchasing any new debt or stock issued by Russia’s largest banks, according to a proposal seen by the Financial Times.

However, the proposal would not initially include the same prohibition for Russian sovereign bond auctions, since EU fear that Russia would do the same.

Despite the limitations, these sanctions, if approved, will be tougher than the US imposed since they will target all banks with more than 50% public ownership.

“Restricting access to capital markets for Russian state-owned financial institutions would increase their cost of raising funds and constrain their ability to finance the Russian economy, unless the Russian public authorities provide them with substitute financing,” as the proposal mentions.

“It would also foster a climate of market uncertainty that is likely to affect the business environment in Russia and accelerate capital outflows”.