Wars and Military Conflicts

US expands Russia sanctions to Sberbank, energy firms

The United States slapped tougher new sanctions against Russia on Friday, including measures against Russia's largest bank——several state-owned defense technology companies and five energy companies.

In addition to hitting Sberbank with new prohibitions, the Treasury Department said it would imposes sanctions on the exportation of goods and services connected to Gazprom, Gazprom Neft, Lukoil, Surgutneftegas and Rosneft. The U.S. has also tightened its previous restrictions on debt financing from 90 days to 30 days for five other banks.

The U.S. announcement coincides with sanctions from the European Union against several state-owned Russian firms and politicians.

A man walks past a branch of Sberbank Rossii on March 7, 2014 in Simferopol, Ukraine.
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"Given Russia's direct military intervention and blatant efforts to destabilize Ukraine, we have deepened our sanctions against Russia today, in concert with our European allies," Treasury Secretary Jack Lew said in a statement. "These steps underscore the continued resolve of the international community against Russia's aggression."

The Treasury also announced that it would prohibit "transactions in, provision of financing for, or other dealings in new debt of greater than 90 days maturity issued by two additional Russian energy companies—Gazprom Neft and Transneft."

Read More Obama: We will join EU in intensifying sanctions on Russia

The new sanctions will also block the assets of OAO Dolgoprudny Research Production Enterprise, Mytishchinski Mashinostroitelny Zavod OAO, Kalinin Machine Plant JSC, Almaz-Antey GSKB, and JSC NIIP—all Russian state-owned defense tech companies, the Treasury said.

In Friday's announcement, Lew highlighted the effects of earlier sanctions.

New Russian sanctions rolled out
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New Russian sanctions rolled out

"Russia's economic and diplomatic isolation will continue to grow as long as its actions do not live up to its words. Russia's economy is already paying a heavy price for its unlawful behavior," he said. "Growth has fallen to near zero, inflation is well above target, and Russian financial markets continue to deteriorate."

On Thursday, President Barack Obama said that the new sanctions would specifically target Russian President Vladimir Putin.

"These measures will increase Russia's political isolation as well as the economic costs to Russia, especially in areas of importance to President Putin and those close to him," Obama said.

On Friday, Putin said he is considering a response to the sanctions, but will only do so if it benefits Russia. He said the new measures against Moscow are intended to harm the peace process in Ukraine, Reuters reported. The Russian president told journalists that the new Western sanctions looked "a bit strange" in coming after an announced cease-fire, according to Reuters.

—By CNBC's Everett Rosenfeld