EU, U.S. bolster sanctions against Russia over Ukraine crisis

PanARMENIAN.Net - The U.S. and EU have bolstered sanctions against Russia over its alleged support for fighting in Ukraine, BBC News reports.

The U.S. has targeted major banks including Gazprombank, defense firms and energy companies including Rosneft.

The EU said it would announce details of its sanctions by the end of July, but added that its investment banks would no longer fund Russian projects.

Russian President Vladimir Putin was quoted as saying sanctions would take U.S.-Russia relations to a "dead end".

The new round of U.S. sanctions announced by the US treasury significantly expands previous penalties by Washington, which were limited to individuals in Russia and Ukraine and a number of companies.

Speaking in Washington, U.S. President Barack Obama said the sanctions were imposed because Russia had failed to fulfill its promises to de-escalate the crisis in Ukraine.

"These sanctions are significant, but they are also targeted, designed to have the maximum impact on Russia while limiting any spill-over impact on American companies or those of our allies," he told reporters.

Obama also stressed U.S. support for Ukraine, saying that "Ukrainians deserve to forge their own destiny".

Putin, on a visit to Brazil, told reporters: "Sanctions have a boomerang effect and without any doubt they will push U.S.-Russian relations into a dead end, and cause very serious damage."

In Brussels, the EU leaders agreed to beef up their own sanctions against Russia.

They said the list of "entities and persons" affected would be announced by the end of July.

The EU said it would suspend new investments in Russia by the EU's European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD).