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The United States and its European Union allies announced Thursday that they will be increasing their sanctions against Russia.
The White House said that it will outline the specifics of the sanctions on Friday.
"We will deepen and broaden sanctions in Russia's financial, energy, and defense sectors," Obama said in the Thursday announcement. "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."
Russia's Foreign Ministry said on Thursday that the EU had shown itself to be against the peace process in Ukraine by imposing a new set of sanctions against Moscow.
"By taking this step, the European Union has de facto made its choice against a peaceful resolution of the inter-Ukrainian crisis," it said in a statement.
"Today Brussels and the leaders of the EU nations need to give a clear answer to EU citizens as to why they are putting them under the risks of confrontation, economic stagnation and unemployment."
Russia has denied any involvement in the Ukraine crisis, despite Western accusations that it has been arming separatist rebels and deploying troops in the neighboring former Soviet republic.
The new EU sanctions are expected to put Russia's top oil producers and pipeline operators Rosneft, Transneft and Gazprom Neft on a list of Russian state-owned firms that will not be allowed to raise capital or borrow on European markets, an EU diplomat said.
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—By CNBC staff with Reuters