Europe plans tougher sanctions on Russia but aims to protect its own interests.

The European Union imposed sanctions on people in President Putin's inner circle after he recognized the Ukrainian enclaves of Luhansk and Donetsk.

In case Mr. Putin decided to invade, a larger package was being prepared. On Wednesday, diplomats expressed hope that the second package would act as a deterrent.

Russian troops launched an invasion of Ukraine on Thursday and it became clear that they had badly miscalculated.

It will be difficult to find compromise without appearing to dither in the face of a once-in-a-generation conflict, but the European Union will seek to quickly approve the second round of sanctions.

The European Union's dependence on Russian gas is one of the ways it is limited in punishing Moscow without damaging its own economies.

Several E.U. members were concerned about the economy of Russia. Austria, Germany and Italy are worried about imposing broad sanctions on cross-border financial transactions. Italy wanted to leave the luxury goods industry untouched so that it could continue exporting high-end products to Russia.

The managing director for Europe with the Eurasia Group consulting firm said that the sanctions could prove to be a big problem for the Prime Minister of Italy.

No E.U. countries were advocating sanctions on Russia for its vital energy sector.

The European Commission has been working on the sanctions package for months, which is why the first set of penalties was approved so quickly. There is no guarantee that the same will happen with the second one.

The bloc was going to adopt the most severe package of sanctions we have ever implemented, according to Josep Borrelle Fontelles, the E.U.'s top diplomat.