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The BBC's Fergal Keane in Mariupol: "People fear the war is now coming to them"
The EU says new sanctions against Russia should be adopted shortly and take effect on Tuesday, despite a Kremlin warning of retaliation.
But an EU spokeswoman said the sanctions would be "reversible", depending on the situation in Ukraine.
Pro-Russian rebels and government troops are observing a fragile truce.
Russia has warned that it could block international flights through its airspace if the EU goes ahead with new measures over the Ukraine conflict.
The pro-Russian separatists have recently made big gains in eastern Ukraine. But a ceasefire agreed on Friday appears to be holding despite some sporadic shooting.
Fighting in the east has killed some 2,600 people since April.
Russia has repeatedly denied accusations by Ukraine and the West that it has been sending troops into Donetsk and Luhansk regions to help the rebels, who want to establish an independent state.
A European Commission spokeswoman said the new sanctions package targeting Russian firms and officials "is due to be formally adopted by member states through a written procedure later today, so the procedure is ongoing".
"It will then be published in the official journal of the EU, which should happen in the course of tomorrow at the latest as plans currently stand," she said.
Publication in the journal puts the sanctions into effect.
Earlier Russian Prime Minister Dmitry Medvedev warned that Moscow would respond "asymmetrically" to further sanctions.
A Russian airspace ban "could drive many struggling airlines into bankruptcy", he told a Russian daily.
"If there are sanctions related to the energy sector, or further restrictions on Russia's financial sector, we will have to respond asymmetrically... For example, restrictions in the transport sector.
"We work on the basis of friendly relations with our partners, and that's why Russia's skies are open to flights. But if we are restricted then we'll have to respond," he told Vedomosti (in Russian).
Airlines would have to pay far more for fuel if Russia blocked their routes to Asian destinations, and flight times would be longer in many cases.
Last week an EU official told the BBC that further sanctions would deepen the existing measures, affecting Russia's access to capital markets, dual-use goods which can be used for military purposes, defence equipment and some other sensitive technologies.
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Richard Galpin in Donetsk: "We've heard the sound of quite a number of mortars being fired"
They would also expand the visa bans and asset freezes on Russian officials and entities, including separatist leaders in Ukraine.
The Ukrainian authorities in Donetsk region say President Petro Poroshenko is expected to visit Mariupol on Monday.
It is the last city in Donetsk region still held by the Ukrainian government and some shelling was reported there at the weekend. It is a strategic port on the route to Crimea, the peninsula annexed by Russia in March.
There was also some fresh shelling near Donetsk airport. The rebels are still holding the city, and have pushed back Ukrainian forces on the outskirts.
On Sunday, Ukrainian security official Volodymyr Poliovyi said 864 Ukrainian soldiers had been killed since the conflict began.
So far there have been no big prisoner exchanges since the ceasefire took effect.
12-point peace roadmap - key elements
- Ensure an immediate bilateral ceasefire
- Carry out decentralisation of power, allowing temporary local self-government in areas of Donetsk and Luhansk in eastern Ukraine under a "special status" law
- Immediately free all hostages and illegally detained persons
- Ensure monitoring on the Ukrainian-Russian border and a security zone
- Ensure the holding of snap local elections in Donetsk and Luhansk
- Remove illegal armed groups, military hardware, and all fighters and mercenaries from Ukrainian territory
- Pass a law against the prosecution and punishment of people over certain events in Donetsk and Luhansk region
Posted by the OSCE on its website (in Russian).
Are you in eastern Ukraine? Email your stories from the region to haveyoursay@bbc.co.uk, adding your contact details.
Send your pictures and videos to yourpics@bbc.co.uk or text them to 61124 (UK) or +44 7624 800 100 (International). If you have a large file you can upload here.
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