European Union flags outside the EU Commission headquarters in Brussels, Belgium (File photo: Reuters)

The measures are part of a fifth package of sanctions that the EU has introduced against Russia since Moscow launched a special military operation in Ukraine on February 24.

In addition, the EU is proposing a comprehensive ban on transactions by four large banks, including VTB, who together account for 25% of Russia's banking and financial market.

EU leaders also plan to tighten the ban on Russian products such as vodka in the EU market.

The additional sanctions will be voted upon by EU members on Wednesday.

The US and its allies plan to impose new sanctions on Russian banks and officials on Wednesday and ban all new investment in Russia.

White House Press secretary Jen Psaki said the new sanctions will increase restrictions on Russian financial institutions and state-owned enterprises and target Russian government officials and their families.

According to Psaki, the US will join the G7 countries and the EU in imposing  additional sanctions to further isolate Russia economically, financially and technologically.