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Russia says EU 'against peace' as US backs new sanctions

The Russian Foreign Ministry said the European Union has "made its choice against" a peace process in Ukraine by approving tougher sanctions against Russia.

President Barack Obama said the United States will join the EU in imposing sanctions on Russia's financial, energy and defence sectors after Moscow sent troops into eastern Ukraine last month.

David Cameron has spoken to European leaders and agreed to push ahead with the sanctions by the end of the week, his spokesman has confirmed.

After the announcement the Russian rouble reached a new historic low against the dollar.

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PM warns of 'consequences' for Russia over Ukraine

David Cameron has warned Vladimir Putin there will be "consequences" if Russian troops are not withdrawn from Ukraine.

Arriving at a summit in Brussels where EU leaders are due to consider beefing up sanctions against Moscow, the Prime Minister said the incursion was "completely unacceptable".

David Cameron meeting Ukraine's President Petro Poroshenko

Mr Cameron, who held talks with Ukraine president Petro Poroshenko in Brussels earlier, said: "We have to address the completely unacceptable situation of having Russian troops on Ukraine soil.

"Consequences must follow if that situation continues and we will be discussing that as well today."

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