European Union (EU) leaders agreed on Thursday to impose new economic sanctions on Russia though the bloc held back from taking the harshest measures sought by Ukraine and split over just how far to take the sanctions, Reuters reports.

Leaders of the 27-nation bloc lambasted Russian President Vladimir Putin at an emergency summit in Brussels, with Latvian Prime Minister Krisjanis Karins describing him as "a deluded autocrat creating misery for millions."

The EU will freeze Russian assets in the bloc and halt its banks' access to European financial markets as part of what EU foreign policy chief Josep Borrell described as "the harshest package of sanctions we have ever implemented."

The sanctions will also target Russia's energy and transport sectors among others, and seek to stifle its trade and manufacturing with export controls.

"Our sanctions will hurt the Russian economy in its heart," said Belgian Prime Minister Alexander De Croo.

There are differences within the EU over how far to go with sanctions, with countries that would face the biggest economic backlash keen to keep the most severe steps in reserve.

An EU diplomat said the bloc, like the United States, would stop short of taking steps to cut Russia off from the SWIFT global interbank payments system.

Earlier on Thursday, US President Joe Biden announced what he described as “additional strong sanctions and new limitations on what can be exported to Russia.”

“We have purposely designed these sanctions to maximize the long-term impact on Russia and to minimize the impact on the United States and our allies. We will limit Russia's ability to do business in dollars, euros, pounds, and yen," said Biden.