The decision by the Council of the European Union comes about three weeks after an estimated 150 anti-government protesters were killed and 1,200 injured at a rally in Guinea's capital Conakry. The International Criminal Court in The Hague has opened an investigation into the September 28 crackdown by Guinea's junta.
"The council has decided to adopt measures targeting the members of the CNDD (junta) and individuals associated with them, responsible for the violent crackdown or the political stalemate in the country," the council said in a draft document issued on Wednesday.
Since development aid for Guinea was already suspended earlier this year, the EU sanctions would mainly focus on freezing the junta's finances and the refusal of travel visas to Europe.
EU foreign ministers are expected to endorse the council's decision at a meeting in Luxembourg next week, increasing the international pressure on Guinea's military leader, Captain Moussa Dadis Camara, to step down.
The EU and the United States have already called for the resignation of Camara, who came to power in a bloodless coup last December following the death of veteran President Lansana Conte.
The West Africa regional bloc ECOWAS, which already imposed an arms embargo against Guinea on Saturday, described the September crackdown as a "real threat to the peace, security and stability of the region."
Editor: Michael Lawton