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US widens sanctions against Russia US widens sanctions against Russia
(35 minutes later)
The US has increased sanctions against Russia over Ukraine, targeting major banks, defence and energy firms.The US has increased sanctions against Russia over Ukraine, targeting major banks, defence and energy firms.
Among those on the list are Gazprombank and Rosneft as well as senior officials in Russia and the self-declared rebel entities in eastern Ukraine.Among those on the list are Gazprombank and Rosneft as well as senior officials in Russia and the self-declared rebel entities in eastern Ukraine.
The US has steadily escalated its sanctions against Russia over what it says is Moscow's backing of the rebels - a claim denied by the Kremlin.The US has steadily escalated its sanctions against Russia over what it says is Moscow's backing of the rebels - a claim denied by the Kremlin.
The EU is also expected to increase its own sanctions against Russia. The EU also agreed to tighten its own sanctions against Russia.
The leaders of the 28-member bloc are currently holding talks in Brussels.
Heavy fighting
The new round of US sanctions announced by the US treasury department significantly expands previous penalties by Washington, which were limited to individuals in Russia and Ukraine and a number of companies.
This time they include the giant oil firm Rosneft and two major banks - Gazprombank and Vnesheconombank.
The weapons manufacturer Kalashnikov Concern is also on the list.
Two self-proclaimed rebel entities in eastern Ukraine - the Donetsk People's Republic and the Luhansk People's Republic - are also targeted.
The penalties stop short of a complete disengagement with sectors of the Russian economy - a step that US officials said was being held in reserve in case Moscow launches a military invasion of Ukraine.
Russia denounced the US move. Deputy Foreign Minister Sergei Ryabkov said Russia would take measures "that will be felt quite painfully in Washington", Interfax news agency reports.
In Brussels, the EU leaders agreed to beef up their own sanctions against Russia.
They said the list "of entities and persons" affected would be announced by the end of July.
The EU said it would suspend new investments in Russia by the EU's European Investment Bank (EIB) and the European Bank of Reconstruction and Development (EBRD).
In Ukraine itself, heavy fighting continued in the east.
Ukrainian officials said 11 soldiers died in the space of 24 hours. The number of casualties among pro-Russian separatists was not immediately known.
Russia annexed the southern Crimean peninsula from Ukraine in March, and has been accused of arming the rebels and even sending regular Russian troops to the Donetsk and Luhansk regions - a claim denied by the Kremlin.
More than 1,000 civilians and combatants have been killed since mid-April, when Ukrainian security forces moved to regain control of the eastern regions, while tens of thousands of people have left.