President Obama and the European Union have imposed new sanctions against Russia, hoping to force President Vladimir Putin to end his support of armed rebels in Ukraine and to seek peace.

The new sanctions are designed to impact on major pillars of the Russian economy, including oil and gas supplies and technology, banking and finance, and arms sales. More close associates of Putin are also targeted.

Like Us on Facebook

New sanctions adopted by the Europeans include an arms embargo on Moscow, and a ban on the sale of sensitive technology to Russia. These include technology that could have dual military and civilian uses, as well as equipment used for deep-sea drilling.

EU citizens and banks will also be barred from purchasing bonds or stocks issued by Russian government-owned banks.

German Chancellor Angela Merkel said EU leaders had warned Moscow several times that its annexation of Crimea and continued destabilization of eastern Ukraine were not acceptable.

"The decision today (on the sanctions) was thus unavoidable," Merkel said, "It is now up to the leadership in Russia to decide whether they want to go the way of de-escalation and cooperation."

Merkel also warned that further steps can also be possible.

EU President Herman Van Rompuy and Commission President Jose Manuel Barroso said the 28-nation bloc wants to send a "strong warning" to Putin that Russia's continued destabilization of Ukraine cannot be tolerated.

Rompuy and Barroso added that "when the violence created spirals out of control and leads to the killing of almost 300 innocent civilians in their flight from the Netherlands to Malaysia, the situation requires urgent and determined response."

In the U.S., President Barack Obama said the economic penalties "will continue to ratchet up the pressure on Russia, including the cronies and companies that are supporting Russia's illegal actions in Ukraine."

The Treasury Department immediately released a list of Russian banks which Americans are blocked from having transactions with. These include the Bank of Moscow, the Russian Agricultural Bank and VTB Bank.

"Today, Russia is once again isolating itself from the international community, setting back decades of genuine progress," Obama said at the White House. He added that if Putin does not accept a diplomatic solution, "the cost on Russia will continue to grow." 

TagsBarack Obama, European Union