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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IMF warns of the economic impact of Ukraine crisis

The International Monetary Fund has warned that Ukraine might need as much as $19 billion (£11.5 billion) in additional loans if the fighting in east of the country continues into next year.

The IMF has already agreed to provide Ukraine with $17 billion (£10.3 billion) loan program.

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