Update | New US sanctions on Russia over Ukraine to hit Putin 'cronies'
Assets of more firms to be frozen, but measures don't target Russian energy sector, which may be best way to pressure Moscow over Ukraine
The United States froze assets and imposed visa bans on seven powerful Russians close to President Vladimir Putin yesterday and also sanctioned 17 Russian companies in reprisal for Moscow's actions in Ukraine.
Among those sanctioned was Igor Sechin, head of state energy giant Rosneft. Its shares dropped nearly 2 per cent, while the broader Moscow stock market rose almost 1 per cent as investors decided the sanctions were softer than expected.
The European Union, with more to lose than Washington from sanctions against Russia, a major energy supplier and trading partner for the EU, was also expected to announce new penalties after member governments reached a deal, diplomats said.
"Russia's involvement in the recent violence in eastern Ukraine is indisputable," a White House statement said.
Moscow insists that a rebellion among Russian speakers in the east against the Kiev authorities is a home-grown response to a coup and denies having forces on the ground.
Armed men seized public buildings yesterday in Kostyantynivka, a town close to the rebel military stronghold of Slavyansk, where European military observers have been held captive since Friday.