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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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French move on Russian warships puts pressure on EU

By ITV News Europe editor James Mates

France's move to suspend delivery of a warship to Russia is very significant. Frankly it is a step that no-one thought France was going to make. This ship, the Vladivostok, is already built. It has got a Russian crew on board.

It was expected to sail from St Saint-Nazaire Azar in a matter of weeks. Suspending this contract for two ships could cost the French more than billion Euros, thousands of ship building jobs and its reputation as a reliable arms supplier.

The Vladivostok is already built. Credit: ITV News

For it to do this on the very day that President Putin was talking about a ceasefire is hugely significant. The Ukrainians say that was just an attempt to bamboozle the West to get sanctions delayed. But if so, it has not worked.

There will be more EU sanctions announced in the next few days. This is really significant, because it is going to cost the French so much, they will expect others to take a big hit too. These new sanctions may be pretty uncomfortable for German manufacturers and for the City of London.

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