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Associated Press
President Barack Obama, speaking outside the White House on Tuesday, announces new economic sanctions against the Russian economy.

New sanctions on Russia

US, Europe impose arms embargo, banking curbs

– Spurred to action by the downing of the Malaysian airliner, the European Union approved dramatically tougher economic sanctions Tuesday against Russia, including an arms embargo and restrictions on state-owned banks. President Barack Obama swiftly followed with an expansion of U.S. penalties targeting key sectors of the Russian economy.

The coordinated sanctions were aimed at increasing pressure on Russian President Vladimir Putin to end his country's support for separatists in eastern Ukraine whom the West blames for taking down the passenger jet nearly two weeks ago. Obama and U.S. allies also warned that Russia was building up troops and weaponry along its border with Ukraine.

“Today, Russia is once again isolating itself from the international community, setting back decades of genuine progress,” Obama said. “It does not have to be this way. This a choice Russia and President Putin has made.”

Tuesday's announcements followed an intense lobbying effort from Obama aimed at getting European leaders to toughen their penalties on Russia and match earlier U.S. sanctions. Europe has a far stronger economic relationship with Russian than the U.S., but EU leaders have been reluctant to impose harsh penalties in part because of concern about a negative impact on their own economies.

However, Europe's calculus shifted sharply after a surface-to-air missile brought down the passenger jet, killing nearly 300 people including more than 200 Europeans. Obama and his counterparts from Britain, France, Germany and Italy finalized plans to announce the broader sanctions Monday in an unusual joint video conference.

Despite the West's escalation of its actions against Russia, Obama said the U.S. and Europe were not entering into Soviet-style standoff with Russia.

“It's not a new cold war,” he said in response to a reporter's question.

Yet it remains uncertain whether the tougher penalties will have any impact on Russia's actions in Ukraine – nor was it clear what other actions the U.S. and Europe were willing to take if the situations remains unchanged.

U.S. officials said they believe economic pressure remains their most effective tool, and Obama reiterated his opposition to sending lethal aid to the Ukrainian military.

The new European penalties a ban on the unapproved sale to the Russians of technology that has dual military and civilian uses or is particularly sensitive, such as advanced equipment used in deep-sea and Arctic oil drilling.

The EU also approved an arms embargo, though it would not restrict past agreements.

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