Fresh US and EU sanctions on Russia

US President Barack Obama has announced new economic sanctions against Russia that will “have an even bigger bite” on Russia’s “weak economy”.

These new sanctions include banning Americans or people living in the US from banking with three Russian banks, namely VTM, the Bank of Moscow, and the Russian Agricultural Bank (Rosselkhozbank).

Obama said that these sanctions target the three key sectors of Russia’s economy- energy, arms and finance.

“If Russia continues on this current path, the costs on Russia will continue to grow,” Obama said.

This “path” referred to Russia’s continued support for rebels in Eastern Ukraine who have announced the formation of the People’s Republics of Donetsk and Lugansk. Russia has not recognized the legitimacy of these self-proclaimed states but has expressed its “respect” for them.

Moscow has denied charges made by the US and the EU that it is supplying heavy weapons to the East Ukrainian rebels or that it was involved in the downing of flight MH17 over Eastern Ukraine that resulted in the death of 298 people, most of them Dutch citizens. It has instead blamed the Ukrainian military.

Heavy fighting between government and rebel forces have meant that an international of Western investigators have not yet been able to access the crash site. US Secretary of State John Kerry has urged Russia and the rebels to allow them full access to it.