“Today is a reminder that the United States means what it says,” Mr. Obama said in a statement on the South Lawn of the White House. “It didn’t have to come to this. There continues to be a better choice.”
He urged Russian President Vladimir Putin to agree to a diplomatic solution to the crisis, which began when Russian annexed the Crimea region from Ukraine in March.
According to the Treasury Department, the new U.S. penalties target the Bank of Moscow, the Russian Agricultural Bank and VTB Bank. Also listed on the Treasury designation is the United Shipbuilding Corp., based in St. Petersburg, Russia.
Mr. Obama told reporters that the crisis is “not a new Cold War,” but said Russia’s actions “have made a weak Russian economy even weaker.”
“The issue is how do we prevent bloodshed in eastern Ukraine,” he said, adding that “nice words from President Putin that are not matched by actions.”
The European Union agreed Tuesday to place sanctions on broad sectors of the Russian economy, marking an escalation of the bloc’s response to Moscow’s role in provoking the conflict in eastern Ukraine.
Some EU members, notably Germany, had been reluctant to take the step prior to the downing 10 days ago of a Malaysian Airlines jetliner that killed all 298 people aboard. The West blames a missile fired by Russia-backed separatists.
The EU’s action will target finance, dual-use equipment with possible military applications, arms and oil-production equipment. The penalties will curtail the ability of Russia’s state-owned banks from borrowing on European markets.
There will also be an embargo on Russia’s arms trade and restrictions on exports of militarily sensitive goods and technology.
Along with the sanctions, Secretary of State John F. Kerry demanded that Russia compel separatists in eastern Ukraine to accept a cease-fire.
Previously, the EU and U.S. have imposed asset freezes and travel bans on individual Russians and pro-Russian separatists in Ukraine.
