Merkel told the country's Parliament Thursday ahead of an EU summit in Brussels that the bloc would expand a freeze of bank accounts and travel bans of people that have been linked to the crisis, AP reported.
Earlier this week, the EU and the United States slapped sanctions on certain individuals that were involved in what they say was the unlawful referendum in Crimea over joining Russia.
She also said that the G-8 will not meet until the situation changes.
Russian President Vladimir Putin was due to host leaders from the top industrial countries in Sochi in June.