G7 willing to step up sanctions on Russia over Ukraine

(front to back) Germany's Chancellor Angela Merkel, U.S. President Barack Obama, European Council President Herman Van Rompuy, European Commission President Jose Manuel Barroso and France's President Francois Hollande participate in a G7 leaders meeting at European Council headquarters in Brussels June 4, 2014. REUTERS/Yves Herman

BRUSSELS (Reuters) - The world's leading industrialised nations threatened on Wednesday to impose harder-hitting sanctions on Russia if it does not help restore stability to eastern Ukraine, where pro-Russian militias continue to operate at will.

While Ukraine was able to hold a largely peaceful presidential election last month, the situation in the east near the Russian border remains volatile, with armed groups attacking Ukrainian government forces and occupying state buildings.