By Jan Strupczewski

BRUSSELS, (Reuters) – The European Union will launch a second set of sanctions against Russia, which includes export controls, if Russian forces move out of the Ukrainian territories held by Russian-backed separatists. This was stated Wednesday by Valdis Dombrovskis, Executive Vice President at European Commission.

Russian President Vladimir Putin recognized Monday independence from two regions that were part of Donbass, an eastern Ukraine region which borders Russia.

Moscow deployed troops to Moscow on Tuesday. The EU, USA, and Britain imposed sanctions against Russian politicians, banks, and hampered the ability of the Russian government to access the EU’s financial market.

However, the EU fears that Russia might continue to invade areas not controlled by separatists. EU leaders are holding an emergency summit Thursday to decide what next.

Dombrovskis explained that Russia decided to escalate this conflict with the recognition and clarification of independence of Donetsk Republics. This is not the area of what the republics actually control, but all of Donbass. So we face a significant escalation.” Dombrovskis spoke in an interview.

“If Russia continues to intrude into Ukraine, we will be ready to intensify our response with sanctions.”

Dombrovskis was asked what this stepping up might mean.

It would be economic sanctions on trade. For example, export control. For several weeks the EU has been working to create a new sanctions package. We have many options for how we can act fast and intensify sanctions in conjunction with Britain, America, and other countries.

The conflict, sanctions and Russian counter-sanctions will have economic repercussions on the EU. But, because the stakes are so serious, the bloc of 27 nations would need to be open-minded.

Dombrovskis stated that “Coming with tough sanctions against Russia will have an impact on the EU’s economy, and we must be prepared for this.”

“But we are facing the threat to the territorial and security integrity of Ukraine, along with the wider security architecture, so it’s important to have the ability to both react, but also to take some economic loss, if needed.”