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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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EU could limit gas use for winter if Russia cuts supply

The European Union could limit gas use to protect household energy this winter if Russia cuts off its gas supply to Europe over the Ukraine crisis.

Russia has threatened to cut off its gas supply to Europe. Credit: Reuters

Kiev claims Russia has threatened to halt its supply over fears Ukraine could siphon off energy destined for the EU as the pipeline runs through the country.

An EU source told Reuters: "In the short-term, we are very worried about winter supplies in south west Europe. Our best hope in case of a cut is emergency measures to protect households."

On Wednesday the EU is expected to discuss whether to impose new sanctions on Russia if they fail to pull its forces out of Ukraine. If it agrees to do so the sanctions are likely to be financial.

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