European Commission President Ursula von der Leyen said Wednesday that the European Union (EU) is preparing a new round of sanctions against Russia while stepping up military and financial support for Ukraine.

Delivering her annual State of the Union address to the European Parliament, von der Leyen said the bloc is working with partners on a 19th package of sanctions, including measures to accelerate the phase-out of Russian fossil fuels and to crack down on Russia's "shadow fleet."

She noted that the EU has already provided nearly 170 billion euros (199 billion U.S. dollars) in military and financial assistance for Ukraine and is devising new mechanisms to ensure long-term support. Among them is a financing plan based on immobilized Russian assets to provide Ukraine with a "Reparations Loan."

Von der Leyen also announced the creation of a "Drone Alliance" with Ukraine to help maintain its battlefield advantage, as well as an "Eastern Flank Watch" system. The latter would involve investment in real-time space surveillance and the construction of a "drone wall" along Europe's eastern border, following a proposal from the Baltic states.

Defending a recent trade agreement with the United States, von der Leyen said the much-debated deal was "the best possible" for Europe, preventing a damaging trade war.

She further unveiled plans for a multi-billion-euro "Scaleup Europe Fund," which will pool EU and private investments to support fast-growing companies in key sectors. (1 euro = 1.17 U.S. dollar)