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UPDATE 1-U.S. sanctions 38 individuals, entities over Russian actions in Ukraine

Ukraine@ (Adds details, background, comment from Treasury)

WASHINGTON, June 20 (Reuters) - The U.S. government on Tuesday sanctioned 38 individuals and organizations over Russia's involvement in Ukraine, the U.S. Treasury Department said in a statement.

The latest round of sanctions targets Ukrainian and Russian officials and companies that U.S. authorities accuse of helping Russia tighten its grip on the Crimean Peninsula, an area of Ukraine annexed by Russia in 2014, an action denounced by Western leaders as illegal.

"These designations will maintain pressure on Russia to work toward a diplomatic solution," said U.S. Treasury Secretary Steven Mnuchin. "This administration is committed to a diplomatic process that guarantees Ukrainian sovereignty, and there should be no sanctions relief until Russia meets its obligations under the Minsk agreements."

The new sanctions freeze any sanctioned assets that are in U.S. banks and prohibit American companies from doing any business with those named. The European Union on Monday extended the bloc's trade sanctions for a year.

The Russian Embassy in Washington did not immediately respond to a request for comment. (Reporting by Joel Schectman Doina Chiacu, editing by G Crosse)