Story highlights
- President Obama says sanctions will hit Russian arms, energy and finance sectors
- This is not part of a new Cold War, Obama says
- EU official: Some of the individuals affected are Putin 'cronies'
- Investigators are prevented from reaching the Malaysia Airlines Flight 17 crash site again
Russia became more isolated Tuesday than it has been at any time since the end of the Cold War after new, hard-hitting sanctions were announced by the European Union and the United States, U.S. officials said.
U.S. President Barack Obama said the measures would take an "even bigger bite" out of the stagnant Russian economy than sanctions Washington and the EU had already implemented against Russia over its disputed annexation of Crimea and its support of pro-Russian rebels fighting the Ukrainian government.
"The major sanctions we're announcing today will continue to ratchet up the pressure on Russia including the cronies and companies supporting Russia's illegal activities in the Ukraine," he said from the White House South Lawn. "In other words, today Russia is once again isolating itself from the international community, setting back decades of genuine progress."
He said the EU sanctions showed to him a waning patience with Russian President Vladimir Putin and the impact of the shoot-down of Malaysia Airlines Flight 17, which had many Europeans among the 298 people on board when it exploded over volatile eastern Ukraine.
Some of the new EU sanctions target eight "cronies" of Putin and three "entities" by limiting their access to EU capital markets, an EU official said on condition of anonymity. The people and entities will be named Wednesday, the official said.
Obama: New sanctions, not a new Cold War 02:04
Expert: No Cold War, but temps dropping 03:08
Fighting stalls MH17 investigation 01:23
Three state-owned banks named Tuesday by Washington means five of the top six financial institutions in Russia were on the sanctions list, according to a senior Obama administration official. Four-fifths of their debt is in U.S. dollars, the official said.
Kerry slams rebels for crash site behavior 03:01
MH17 investigators delayed again 02:28
New sanctions will also impact the future of Russia's important oil businesses with technology licensing restrictions, another senior administration official said. Restrictions will affect Russia's ability to produce oil from deep-water wells and shale fields, sectors it is only beginning to explore.
The sanctions, however, are not part of a new Cold War, Obama said.
"What it is, is a very specific issue related to Russia's unwillingness to recognize that Ukraine can chart its own path," Obama said.
The EU sanctions also will block new arms contracts between Europe and Russia, prohibit the export of European goods that can be used for both civilian and military purposes and limit the export of energy-related equipment, the EU said in a written statement Tuesday evening.
The European Union had previously been reluctant to issue harsher sanctions against Russia because both regions rely on one another for about $500 billion in trade and investment each year, according to CNNMoney.
"It is meant as a strong warning: Illegal annexation of territory and deliberate destabilization of a neighboring sovereign country cannot be accepted in 21st century Europe," the European Council's statement reads.
One of the senior administration officials said Russia hasn't been this isolated "since the end of the Cold War."
Obama said Russia could choose a different path.
"It didn't have to come to this. It does not have to be this way," Obama said. "This is a choice that Russia and President Putin in particular has made. ... The path for a peaceful resolution to this crisis involves recognizing the sovereignty, the territorial integrity and the independence of the Ukrainian people."
Investigators thwarted again
Meanwhile, international investigators and observers were prevented for the third straight day from reaching the MH17 crash site.
The Dutch Justice Ministry said its team was unable to leave the city of Donetsk because of violence.
The 50-strong team of Dutch and Australian experts, accompanied by monitors from the Organization for Security and Co-operation in Europe, was also forced to abandon its attempts to reach the site Sunday and Monday.
Dutch investigators have yet to lay eyes on the wreckage or the human remains believed still to be strewn across the huge debris field near the town of Torez.
U.S. and Ukrainian officials have said that a Russian-made missile system was used to shoot down MH17 from rebel territory. Russia and the rebels have disputed the allegations and blamed Ukraine for the crash.
Dutch Prime Minister Mark Rutte asked Ukrainian President Petro Poroshenko in a phone call Tuesday morning to halt the fighting around the crash site so that investigators can access it, Rutte spokesman Jean Fransman said.
Reports of ballistic missiles
The United States and others say Russia has provided arms to rebels in eastern Ukraine, including heavy weapons such as a missile system like the one believed used to down the Malaysian airliner 12 days ago.
Despite previous sanctions, the flow of weapons continues and on Tuesday the fighting appeared to have entered a dangerous new phase. There were reports that Ukraine's government in the past 48 hours used short-range ballistic missiles against the rebels, three U.S. officials told CNN.
MH17 investigators forced to turn back 02:15
Battle nears MH17 crash scene 02:23
First family reaches MH17 crash site 01:30
Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Debris from Malaysia Airlines Flight 17 sits in a field at the crash site in Hrabove, Ukraine, on September 9, 2014. The Boeing 777 was shot down July 17, 2014, over Ukrainian territory controlled by pro-Russian separatists. All 298 people on board were killed. In an October 2015 report, Dutch investigators found the flight was shot down by a warhead that fit a Buk rocket, referring to Russian technology, Dutch Safety Board Chairman Tjibbe Joustra said.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Australian and Dutch experts examine the area of the crash on August 3, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A woman walks with her bicycle near the crash site on August 2, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Police secure a refrigerated train loaded with bodies of passengers from Malaysia Airlines Flight 17 as it arrives in a Kharkiv, Ukraine, factory on July 22, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A pro-Russian rebel passes wreckage from the crashed jet near Hrabove on Monday, July 21, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
– Wreckage from the jet lies in grass near Hrabove on July 21, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A man covers his face with a rag as members of the Organization for Security and Co-operation in Europe and the Dutch National Forensic Investigations Team inspect bodies in a refrigerated train near the crash site in eastern Ukraine on July 21, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Emergency workers carry a victim's body in a bag at the crash site on July 21, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A piece of the plane lies in the grass in eastern Ukraine's Donetsk region on July 21, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
An armed pro-Russian rebel stands guard next to a refrigerated train loaded with bodies in Torez, Ukraine, on Sunday, July 20, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Ukrainian State Emergency Service employees sort through debris on July 20, 2014, as they work to locate the deceased.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A woman covers her mouth with a piece of fabric July 20, 2014, to ward off smells from railway cars that reportedly contained passengers' bodies.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Toys and flowers sit on the charred fuselage of the jet as a memorial on July 20, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
People search a wheat field for remains in the area of the crash site on July 20, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A woman walks among charred debris at the crash site on July 20, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Emergency workers load the body of a victim onto a truck at the crash site on Saturday, July 19, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Emergency workers carry the body of a victim at the crash site on July 19, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A large piece of the main cabin is under guard at the crash site on July 19, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Victims' bodies are placed by the side of the road on July 19, 2014, as recovery efforts continue at the crash site. International officials lament the lack of a secured perimeter.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A man looks through the debris at the crash site on July 19, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
An envelope bearing the Malaysia Airlines logo is seen at the crash site on July 19, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Armed rebels walk past large pieces of the Boeing 777 on July 19, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Ukrainian rescue workers walk through a wheat field with a stretcher as they collect the bodies of victims on July 19, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A woman looks at wreckage on July 19, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Pro-Russian rebels stand guard as the Organization for Security and Co-operation in Europe delegation arrives at the crash site on Friday, July 18, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A woman walks through the debris field on July 18, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Pro-Russian rebels stand guard at the crash site.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Wreckage from Flight 17 lies in a field in Shaktarsk, Ukraine, on July 18, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A man covers a body with a plastic sheet near the crash site on July 18, 2014. The passengers and crew hailed from all over the world, including Australia, Indonesia, Malaysia, Germany and Canada.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A diver searches for the jet's flight data recorders on July 18, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Coal miners search the crash site.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Wreckage from the Boeing 777 lies on the ground July 18, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
People search for bodies of passengers on July 18, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A woman walks past a body covered with a plastic sheet near the crash site July 18, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Belongings of passengers lie in the grass on July 18, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
People inspect the crash site on Thursday, July 17, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
People walk amid the debris at the site of the crash.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Debris smoulders in a field near the Russian border.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Fire engines arrive at the crash site.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A man stands next to wreckage.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Debris from the crashed jet lies in a field in Ukraine.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Family members of those aboard Flight 17 leave Schiphol Airport near Amsterdam, Netherlands.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A large piece of the plane lies on the ground.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Luggage from the flight sits in a field at the crash site.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A couple walks to the location at Schiphol Airport where more information would be given regarding the flight.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Flight arrivals are listed at the Kuala Lumpur International Airport in Sepang, Malaysia.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Debris from the Boeing 777, pictured on July 17, 2014.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A man inspects debris from the plane.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
Wreckage from the plane is seen on July 17, 2014.
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A man talks with security at Schiphol Airport on July 17, 2014.
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Wreckage burns in Ukraine.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A man stands next to the wreckage of the airliner.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
People inspect a piece of wreckage believed to be from Malaysia Airlines Flight 17. This image was posted to Twitter.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
People inspect a piece of wreckage believed to be from Malaysia Airlines Flight 17. This image was posted to Twitter.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A piece of wreckage believed to be from Malaysia Airlines Flight 17. This image was posted to Twitter.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A piece of wreckage believed to be from MH17. This image was posted to Twitter.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
An airsickness bag believed to be from MH17. This image was posted to Twitter.
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Photos: Malaysia Airlines Flight 17 crashes in Ukraine
A piece of wreckage believed to be from MH17. This image was posted to Twitter.
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'Russian cooperation close to zero' 03:34
Data recorders help explain MH17 downing 01:59
Family's one last photo aboard MH17 02:09
The weapons have a range of about 50 miles (80 kilometers) and pack up to 1,000-pound (454-kilogram) warheads. If the reports are accurate, they are the most deadly missiles used in the conflict to date.
The U.S. officials did not specify where the missiles hit or what damage they caused.
One U.S. official said there has been no reaction from Russia so far.
Another of the U.S. officials said using the missiles is "an escalation, but Ukraine has a right to defend itself."
Ukrainian Foreign Minister Pavlo Klimkin acknowledged that his country's military has short-range missiles, but denied that the military fired any.
In a joint news conference with Klimkin, U.S. Secretary of State John Kerry praised Ukrainian officials for proposing a peace plan that includes "serious and substantive dialogue with the Russian-backed separatists."
Russia: Checkpoint came under fire
Russia's Foreign Ministry said in a statement on its website that a Russian checkpoint had come under fire from Ukrainian forces.
It says Ukrainian officers used automatic weapons and grenades at the Gukovo customs checkpoint, causing damage.
On Tuesday, Klimkin, the Ukrainian foreign minister, denied that Ukrainian forces had fired into Russia.
The defense minister for the self-declared Donetsk People's Republic, Igor Strelkov, said that there had been "extremely severe" battles between his rebel forces and the Ukrainian military in the area of Shaktarsk and Torez.
He said a number of injured rebel fighters, as well as some medical personnel, had been evacuated from Donetsk to Russia. Moscow has denied arming and supporting the rebels, but Strelkov's words indicate that Russia is serving as a kind of haven for the rebels.
Strelkov also denied his fighters had the weapons system needed to shoot down an airliner.
