U.S. President Joe Biden announced on Tuesday new sanctions in retaliation for Russia recognising two breakaway regions of Ukraine and sending troops there, adding to Western efforts to stop what they fear is the beginning of a full-scale invasion. According to Reuters the measures target Russian banks and sovereign debt, among other steps.
Biden announced moves to block trade involving two large banks - VEB and the Russian Military Bank - and to cut off parts of the Russian economy from international financial systems.
Biden said these moves went "far beyond" previous measures and would cut the Russian government off from Western financing for its sovereign debt.
"I'm going to begin to impose sanctions in response, far beyond the steps we and our allies and partners implemented in 2014," he added, in a reference to Russia's annexation of Crimea from Ukraine.
The hit to Russia's sovereign debt meant the Russian government would be cut off from Western financing, according to Biden.
Earlier on Tuesday, Germany put the brakes on a new gas pipeline from Russia and Britain also hit Russian banks with sanctions. The Russian foreign ministry criticised the new measures as "illegitimate".
The European Union also agreed new sanctions that will blacklist more politicians, lawmakers and officials, ban EU investors from trading in Russian state bonds, and target imports and exports with separatist entities.
A raft of sanctions against Russia have been announced by Western nations. The most recent are from US President Joe Biden, who said there would be sanctions against two financial institutions, VEB and Russia's military bank. Parts of the Russian economy are being cut off from international financial systems, he said.
Further sanctions against Russian elites and their families are expected.
UK Prime Minister Boris Johnson said five banks were having their assets frozen, and three Russian billionaires - who will also be hit with UK travel bans - will face the same.
After he announced the measures in the House of Commons earlier, some MPs argued that they did not go far enough - but Johnson said the sanctions could be extended.
Germany suspended certification of the Nord Stream 2 pipeline, which was to bring gas from Russia. The country supplies Europe with about 40% of its gas, sourced from vast supplies in Russia's east.
And the EU unanimously agreed its first wave of measures, which includes targeting all members of Russia's parliament who approved the Ukraine decision. Russian banks and access to the EU's financial markets were also blocked.
But the sanctions so far fall short of what had been threatened in the event of invasion. There had been speculation that Russia could have faced being cut off from the global banking system, denied access to the dollar, or even face import or export restrictions.
