MOSCOW, Feb 21 (Reuters) - Russian President Vladimir Putin told France's president and Germany's chancellor during phone calls on Monday that he planned to sign a decree recognising the two breakaway regions of Ukraine as independent entities shortly, the Kremlin said.

The French and German leaders voiced disappointment after hearing the decision, the Kremlin said in a readout of the phone calls.

Our sources told us that the two European leaders were "shocked".

BRUSSELS, Feb 21 (Reuters) - The European Union joined calls on Monday for Russia not to annex or recognize breakaway Ukrainian regions, threatening to impose sanctions should Moscow do so.

Ignoring the warnings, the Kremlin said Russian President Vladimir Putin told France's and Germany's leaders during phone calls on Monday that he planned to sign a decree recognising the two breakaway regions of Ukraine as independent entities shortly.

"If there is annexation, there will be sanctions, and if there is recognition, I will put the sanctions on the table and the ministers will decide," the EU's foreign policy chief Josep Borrell said after a meeting of EU foreign ministers.