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US warns Russia 'costs will rise' unless peace deal agreed

The White House said President Barack Obama urged Russian President Vladimir Putin in a phone call to agree to a peace deal.

"If Russia continues its aggressive actions in Ukraine, including by sending troops, weapons, and financing to support the separatists, the costs for Russia will rise," the White House statement added.

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US and European leaders to discuss potential 'costs' for Russia

US Vice President Joe Biden will discuss the situation in Ukraine with European leaders in Brussels on Friday, including the possibility of imposing "additional costs" on Russia.

Vice President Biden will also discuss options for helping Ukraine in its armed conflict with rebels, including security and financial aid.

He is due to meet German Chancellor Angela Merkel and Ukrainian President Petro Poroshenko at a security conference in Munich.

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