The new sanctions will target Russia's defense and energy sectors, financial institutions and several individuals, the report said, adding that U.S. and allies may also look into preventing the evasion and circumvention of sanctions in order to disrupt the support Russia receives from third countries.

A spokesperson for the White House National Security Council declined comment when contacted by Reuters.

The European Union's proposal for new sanctions include Iranian entities seen to be providing Russia with drones and other military supplies, technologies, components, heavy vehicles, electronics and rare-earths, the report said.

Earlier this month, the United States issued new sanctions on Russia over cyber activities that targeted seven individuals, including six Russians and one Ukrainian, following which Russia sanctioned 77 U.S. citizens from entering Russia in a retaliatory move.

(Reporting by Shubhendu Deshmukh in Bengaluru, editing by Deepa Babington and Nick Zieminski)