LIVE UPDATES: Additional Sanctions to Be Imposed on Russia Over Donbass Referenda - EU Statement

The European Union will impose new sanctions on Russia's leadership and people involved in organizing referenda in the Donetsk and Lugansk People's Republics (DPR and LPR), the Kherson and Zaporozhye regions, according to a declaration by EU foreign policy chief Josep Borrell on behalf of the EU.

"Russia, its political leadership, and all those involved in organizing these 'referenda' as well as in other violations of international law and international humanitarian law in Ukraine will be held accountable, and additional restrictive measures against Russia will be brought forward as soon as possible in coordination with our partners," Borrell said.

He also said the EU foreign ministers have not compiled a new sanctions list yet, and added the EU will continue to render military assistance to Ukraine, and adopt new personal and sectoral sanctions.

If sanctions are lifted from Russia, prices and inflation will immediately drop in Europe, the European economy could recover and avoid a recession, Hungarian Prime Minister Viktor Orban said.

"If the sanctions were lifted, prices would immediately fall by half, inflation would also drop. Without sanctions, the European economy would recover and could avoid an impending recession," Magyar Nemzet quoted Orban as saying at a meeting of the ruling coalition of the Fidesz party and Christian Democratic People's Party.

The International Atomic Energy Agency (IAEA) has started negotiations with Ukraine, Russia, and other partners on the parameters of a potential security zone around the Zaporozhye nuclear power plant (ZNPP) and specific aspects of it, Director General Rafael Grossi said on Wednesday.

"I'm here working on the establishment of a nuclear safety and security protection zone around the nuclear power plant Zaporozhye here. I had a meeting with the two foreign ministers – [Russian] Foreign Minister [Sergey] Lavrov, [Ukrainian] Foreign Minister [Dmytro] Kuleba, and then a meeting organized or presided by [French] President [Emmanuel] Macron and the Ukrainian Prime Minister [Denys Shmyhal], with the foreign ministers of the G7 countries, the EU, High Representative Josep Borrell, and Mexico as well was present. The wheels are in motion," Grossi told a press briefing on the sidelines of the UN General Assembly.

"We are already working on the very concrete aspects that would be required to have the zone to be established," Grossi added.

KHERSON (Sputnik) - A powerful explosion occurred in the KhBK microdistrict in Kherson, not far from the KhBK-Tavrichesky bridge crossing, a Sputnik correspondent reported from the scene.

Black smoke is rising at the explosion site.

He has emphasized that all the necessary arrangements have been made for the vote, which will take place on September 23-27.

The US is monitoring the situation, but sees no need to boost its own strategic forces' readiness, he added.

The mobilization of 300,000 reservists in Russia is "a lot," National Security Council coordinator John Kirby told ABC news on Wednesday.