US imposes new wide-ranging sanctions on Russia

President Barack Obama has announced the most wide-ranging sanctions yet on the Russian economy, targeting key institutions over the crisis in eastern Ukraine. He said the sanctions are "designed to have the maximum impact on Russia."

Obama: 'Russia has failed' in halting weapons flow

A pro-Russian separatist stands on a tank in eastern Ukraine.
A pro-Russian separatist stands on a tank in eastern Ukraine. Credit: REUTERS/Maxim Zmeyev

President Barack Obama announced more sanctions on Russia yesterday, stating that Russia is not doing enough to halt the flow of weapons and fighters into eastern Ukraine.

Speaking to reporters at the White House he said:

These sanctions are significant, but they are also targeted, designed to have the maximum impact on Russia while limiting any spillover impact on American companies or those of our allies.

Ive repeatedly made it clear that Russia must halt the flow of weapons and fighters across the border into Ukraine.

So far, Russia has failed to take any of the steps that I mentioned.

– President Obama

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EU to impose sanctions on Russian companies

European Union leaders would work to block loans for new projects in Russia as well as a range of other sanctions in response to Moscow's actions in Ukraine, according to a draft statement.

The statement said that EU countries would also work together to suspend funding for new projects in Russia through the European Bank for Reconstruction and Development.

European Union leaders say they will impose sanctions on Russia in  response to Moscow's actions in Ukraine.
European Union leaders say they will impose sanctions on Russia in response to Moscow's actions in Ukraine. Credit: Reuters

Sanctions would also target companies that helped to undermine Ukrainian sovereignty and a first list of companies and people to be targeted with asset freezes would be drawn up by the end of July.

This comes as the US announced its widest-ranging sanctions against Russia yet.

Read: US imposes widest-ranging sanctions on Russia

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US imposes most wide-ranging sanctions on Russia

The United States has imposed its most wide-ranging sanctions yet on Russia's economy over Moscow's "provocative" behavior in Ukraine.

The sanctions included Gazprombank and the Rosneft Oil Co, and other major banks and energy and defense companies.

Washington has steadily escalated its financial sanctions on Russia over what it views as Moscow's interference in its neighbour Ukraine.

President Obama is due to make a statement on sanctions the US might put on Russia over Ukraine.
President Obama is due to make a statement on sanctions the US might put on Russia over Ukraine. Credit: PA

A senior US administration official told reporters on a conference call that the sanctions were designed to avoid spillover risk for the global economy.

President Barrack Obama is due to shortly make a statement on the Russian sanctions, the White House said.