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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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Report: Rebels to exchange prisoners with Ukraine

Rebel leaders in eastern Ukraine are preparing to exchange prisoners with Ukrainian forces on Wednesday, a senior pro-Russian separatist leader was quoted as saying.

Interfax news agency cited Andrei Purgin, who took part in peace talks with Kiev on Friday, said he hoped an "all-for-all" exchange would go ahead. Plans to exchange captives were agreed during Friday's talks.

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