The European Union and the United States on Tuesday announced further sanctions against Russia in the strongest international action yet over Moscow's support for rebels in eastern Ukraine.
In Brussels, the 28-member European bloc agreed to restrictions on the trade of equipment for the oil and defense sectors.
Russia's state-run banks will also be barred from raising funds in European capital markets.
The move marks the strongest confrontation between Moscow and the West since the end of the Cold War.
This latest action was triggered by the downing of Malaysia Airlines flight 17 by what was likely a Russian-supplied missile.
Moscow continues to deny the charges.
The U.S. also imposed sanctions on Moscow by banning Americans or people in the U.S. from banking with three Russian banks.
President Obama said if Russia remains on its current path, the costs on Russia will continue to grow, and that the coordinated actions of the U.S. and EU will make the weak Russian economy even weaker.
The sanctions could cost Russia some 30-billion dollars this year according to online media EU Observer but if Moscow slaps back with similar action, the EU could suffer damage estimated at 55 billion dollars.
To mitigate the impact on Europe's economy, the new sanctions will not affect previous contracts, and Russia's natural gas, which powers European industry and lights its cities, has been spared.
Russia is the world's biggest exporter of natural gas and second biggest exporter of oil.
Song Ji-sun, Arirang News.