By Laura Smith-Spark and Michael Holmes
updated 6:52 AM EST, Wed March 5, 2014
Kiev, Ukraine (CNN)
-- The Kremlin is threatening to hit back if the European Union levies sanctions against Russia over its actions in Ukraine.
Russian lawmakers are drafting a law that will allow Russia to confiscate assets belonging to U.S. and European companies if it faces sanctions.
Andrei Klishas, a senior lawmaker in the upper house, said the bill "would offer the president and government opportunities to defend our sovereignty from threats," state news agency RIA Novosti reported.
The tit-for-tat threats are the latest in a war of words over Russia's military intervention in Ukraine's southern Crimea region.