French President Francois Hollande announced the measure after a meeting of European Union heads of state and government gathered to discuss the Ukraine crisis for the second time in less than two weeks.
"Russia must understand that it cannot continue, that it must take the path of dialogue," Hollande said yesterday.
The names of those targeted will be made public today.
The EU move came on the heels of an announcement by US President Barack Obama of a new round of punitive measures against 20 Russian lawmakers and senior government officials, in addition to 11 individuals already targeted.
Hollande said earlier that "borders cannot be redrawn and a region allowed to pass from one nation to another without a response".