Ukraine’s Interior Minister Arsen Avakov has announced that security forces have launched an operation against pro-Russian activists who seized a police station in Sloviansk on Saturday.
Arsen Avakov wrote on his Facebook page that “all security units” were involved in an “anti-terror operation” in the eastern city of Sloviansk.
Russia warned earlier that any use of force in eastern Ukraine could scupper crisis talks due later this week.
The US accuses Moscow of inciting the trouble. The Kremlin denies the charge.
Russia’s Foreign Minister Sergei Lavrov said the Kiev government was “demonstrating its inability to take responsibility for the fate of the country”.
Armed men took over police stations and official buildings in Sloviansk and two other eastern towns (photo Reuters)
The US said there had been a “concerted campaign” by forces with Russian support to undermine the authorities in Kiev.
US Secretary of State John Kerry warned of “additional consequences” if Russia failed to make efforts to “de-escalate” and pull its troops back from Ukraine’s border.
Four-party talks involving Ukraine, Russia, the US and the EU are due to start in Geneva on Thursday.
On Saturday, armed men took over police stations and official buildings in Sloviansk and two other eastern towns – Kramatorsk and Druzhkovka.
Similar reports emerged from Sloviansk and Kramatorsk of armed men dressed in camouflage arriving in buses and storming the police stations.
Pro-Russian demonstrators also continued their occupation of the main administrative building in the regional capital Donetsk, which they have held for one week.
Arsen Avakov labelled the actions a “display of aggression by Russia”.
Eastern Ukraine has a large Russian-speaking population and has seen a series of protests since the ousting of Ukraine’s pro-Russian President Viktor Yanukovych in February.
In a letter to European leaders, President Vladimir Putin has warned Europe that Ukraine’s delays in paying for Russian gas have created a “critical situation”.
Pipelines transiting Ukraine deliver Russian gas to several EU countries and there are fears that the current tensions could trigger gas shortages.
Armed pro-Russian separatists are holed up in official buildings in Donetsk and Luhansk, in eastern Ukraine.
Meanwhile, a European human rights body has stripped Russia of voting rights.
The Parliamentary Assembly of the Council of Europe (PACE) monitors human rights in 47 member states, including Russia and Ukraine.
Protesting against Russia’s annexation of Crimea last month, PACE suspended Russia’s voting rights as well as Russian participation in election observer missions.
The Russian delegation had boycotted the meeting. Its leader, Alexei Pushkov, described the proceedings as a “farce”.
Vladimir Putin has warned Europe that Ukraine’s delays in paying for Russian gas have created a critical situation
Russian state gas giant Gazprom says Ukraine’s debt for supplies of Russian gas has risen above $2 billion (1.4 billion euros).
Gazprom said on Wednesday it could demand advance payments from Kiev for gas but President Vladimir Putin said the company should hold off, pending talks with “our partners” – widely believed to mean the EU.
President Vladimir Putin warned that the “critical” situation could affect deliveries of gas to Europe, his spokesman Dmitry Peskov was quoted as saying.
Vladimir Putin suggested “special” measures, he added, without elaborating. Nearly one-third of the EU’s natural gas comes from Russia.
Previous Russian gas disputes with Ukraine have led to severe gas shortages in several EU countries. The EU says it has extra gas supplies and reverse-flow technology to deal with any such disruption now.
In Kiev, the authorities said Ukraine would not prosecute pro-Russian activists occupying official buildings in Donetsk and Luhansk if they surrendered their weapons.
Ukraine has accused Russia of stirring up the unrest, a claim Moscow denies.
NATO says up to 40,000 Russian troops are massed near Ukraine’s border.
Ukraine fears that the Russian separatist actions are a provocation similar to the protests that gripped Crimea days before Russian troops annexed the peninsula last month.
The separatists in the east – a mainly Russian-speaking region with close ties to Russia – are demanding referendums on self-rule. In Donetsk they have declared a “people’s republic”.
Russia, the US, Ukraine and the EU are to hold talks in Geneva next Thursday to try to resolve the impasse, EU diplomats have said.
They will be the first four-way talks since the crisis began.
Russian Foreign Minister Sergei Lavrov told US Secretary of State John Kerry by telephone on Wednesday that the meeting should focus on fostering dialogue among Ukrainians and not on bilateral relations among the participants.
In another development, President Vladimir Putin sacked 14 generals, Russian media report.
It was not immediately clear if the move was a routine step. Russia has some 800 generals in its army alone.
The US is concerned about heightened tension in eastern Ukraine after pro-Russia demonstrators seized government buildings in three eastern cities, Donetsk, Luhansk and Kharkiv.
Secretary of State John Kerry told Russian counterpart Sergei Lavrov in a phone call that any Russian efforts at destabilization “would incur costs”.
They discussed the possibility of direct talks within the next 10 days.
Ukraine is sending security officials to Donetsk, Luhansk and Kharkiv, after buildings there were stormed.
Rebels occupying Donetsk’s regional government building declared a “people’s republic” on Monday and called for a referendum on secession from Ukraine to be held by May 11.
Russia recently annexed the Ukrainian peninsula of Crimea, where the majority of people are Russian speakers, following a referendum that Kiev and the West say was illegal.
Moscow now has thousands of troops massed along its border with eastern Ukraine. Although it insists it has no intention of invading Ukraine, it says it reserves the right to defend ethnic Russians in the country.
The US has warned Russia against stirring separatist sentiment in eastern Ukraine
Russia is refusing to recognize the new authorities in Kiev who took power after pro-Moscow President Viktor Yanukovych was ousted in February.
US state department spokeswoman Jennifer Psaki said that in the telephone call, John Kerry “called on Russia to publicly disavow the activities of separatists, saboteurs and provocateurs” in Ukraine.
She said John Kerry noted that the actions in eastern Ukraine “do not appear to be a spontaneous set of events”.
“He made clear that any further Russian efforts to destabilize Ukraine will incur further costs for Russia,” Jennifer Psaki said.
The US and the EU have already imposed targeted sanctions on Russian and Ukrainian individuals over the annexation of Crimea.
Sergei Lavrov, in an article on the website of the UK’s Guardian newspaper, denied Russia was destabilizing Ukraine and accused the West of “groundless whipping-up of tension”.
He also warned authorities in Kiev against any use of force against pro-Russian demonstrators.
Russia’s foreign ministry said it was “closely watching” events in eastern Ukraine, “particularly in Donetsk, Luhansk and Kharkiv regions”.
It reiterated Moscow’s demands for the creation of a federal Ukraine with broader powers for provinces.
“Stop pointing to Russia, blaming it for all of the troubles of today’s Ukraine,” the statement said.
Pro-Russian protesters seized official buildings in Kharkiv, Luhansk and Donetsk on Sunday night. Police said they cleared protesters from the building in Kharkiv but in Luhansk demonstrators had seized weapons.
Ukraine’s interim President Oleksandr Turchynov called the unrest an attempt by Russia to “dismember” Ukraine.
Speaking on national TV, he said it was “the second wave” of a Russian operation to destabilize Ukraine, overthrow the government and disrupt planned elections.
Also on Monday, NATO said it was limiting Russian diplomats’ access to its headquarters in Brussels.
Pro-Russian protesters have declared People’s Republic of Donetsk after seizing the regional government building in the eastern Ukrainian city.
The rebels have called for a referendum on secession from Ukraine by May 11.
Ukrainian security officials are being sent to the eastern cities of Donetsk, Luhansk and Kharkiv after pro-Russia groups occupied government buildings.
Ukraine’s Interim President Oleksandr Turchynov called the unrest an attempt by Russia to “dismember” Ukraine.
In an address on national TV, Oleksandr Turchynov said it was “the second wave” of a Russian operation to destabilize Ukraine, overthrow the government and disrupt planned elections.
Russia recently annexed Ukraine’s Crimean peninsula after a referendum there which Ukraine did not see as valid.
As tensions mounted on Monday, Ukrainian Foreign Minister Andriy Deshchytsya told Russia’s Ekho Moskvy news agency that Kiev would go to war with Russia if it sent troops into eastern Ukraine.
Moscow has thousands of troops massed along its border with Ukraine. It says it has no intention of invading but reserves the right to protect the rights of ethnic Russians.
Earlier on Monday, protesters seized state security buildings in Donetsk and Luhansk.
Protesters broke into Donetsk’s regional government building and another in Kharkiv – Ukraine’s second largest city – on Sunday. Ukrainian authorities say protesters have now left the building in Kharkiv.
Pro-Russian protesters have declared People’s Republic of Donetsk after seizing the regional government building in the eastern Ukrainian city
Ukrainian news agency Unian says gunmen also tried to storm a Donetsk TV building on Monday but were deterred by police.
At an emergency cabinet meeting, interim PM Arseniy Yatsenyuk blamed Russia for the seizures.
“The plan is to destabilize the situation, the plan is for foreign troops to cross the border and seize the country’s territory, which we will not allow,” he said, adding that people engaged in the unrest had distinct Russian accents.
Arseniy Yatsenyuk said Russian troops remain within 19 miles of the frontier. The city of Luhansk is just 16 miles from the Russian border.
Police have blocked roads into Luhansk and armed reinforcements are being sent to the restive cities.
Officials said Ukrainian National Security Secretary Andriy Parubiy and Security Service chief Valentyn Nalyvaychenko have been sent to the city.
Interior Minister Arsen Avakov has already arrived in Kharkiv and First Deputy PM Vitaly Yarema is on his way to Donetsk, a spokeswoman said.
She said the three officials had “all the authority necessary to take action against separatism.”
President Oleksandr Turchynov has cancelled a visit to Lithuania to deal with the unfolding events.
Russia’s foreign ministry said it was “closely watching” events in eastern Ukraine, “particularly in Donetsk, Luhansk and Kharkiv regions”.
It reiterated Moscow’s demands for the creation of a federal Ukraine with broader powers for provinces.
“Stop pointing to Russia, blaming it for all of the troubles of today’s Ukraine,” the statement said.
The crisis has heightened nervousness in many other eastern European states, with Czech President Milos Zeman saying NATO should deploy troops in Ukraine if Russia invades.
“If Russia decides to extend its territorial expansion to eastern Ukraine, the fun is over,” he told Czech public radio on Sunday.
In another development on Monday, NATO said it was limiting Russian diplomats’ access to its headquarters in Brussels.
It comes days after NATO foreign ministers agreed to suspend all practical co-operation with Moscow over its annexation of Crimea.
The latest developments come as Ukraine’s defense ministry said a Russian soldier had killed a Ukrainian military officer still loyal to Kiev in eastern Crimea late on Sunday.
The circumstances are unclear. Russian news agencies said prosecutors had opened a criminal investigation into the death.
Pro-Russian protesters have seized state security buildings in eastern Ukraine’s cities of Donetsk and Luhansk, officials say.
Reports say that in Luhansk the protesters have raided the arsenal in the security building. Police have reacted by blocking roads into Luhansk.
On Sunday, activists broke into the regional government buildings in the two cities and also Kharkiv.
Ukraine’s acting President Oleksandr Turchynov has called an emergency security meeting.
It comes as Ukraine’s Defense Ministry said a Russian soldier had killed a Ukrainian military officer still loyal to Kiev in eastern Crimea late on Sunday.
Another Ukrainian officer present is reported to have been beaten and detained by Russian troops.
Pro-Russian protesters have seized state security buildings in eastern Ukraine (photo Reuters)
The circumstances of the incident are unclear. The Interfax-Ukraine news agency quoted the Defense Ministry as saying the incident happened outside the Ukrainian’s living quarters.
Russian reports said a group of Ukrainian soldiers had been drinking in the town of Novofyodorovka and were on their way home when they passed Russian soldiers guarding an entry to the military base where they previously worked, prompting an argument between the two groups.
Russian news agencies reported that prosecutors have opened a criminal investigation into the death – one of few fatalities reported since Russia took control of Crimea last month.
Tensions have escalated in eastern Ukraine in recent weeks. Russia is consolidating its grip on Crimea, annexed by Moscow last month, and thousands of Russian troops remain massed near the Ukrainian border.
Ukrainian authorities say protesters have now left the government building in Kharkiv.
In Luhansk, on Monday police said “unknown people who are in the building have broken into the building’s arsenal and have seized weapons”.
In Donetsk, groups occupying the provincial government building remain barricaded inside.
President Oleksandr Turchynov cancelled a visit to Lithuania to deal personally with the unfolding events.
Meanwhile Ukraine’s PM Arseniy Yatsenyuk has accused Russia on Monday of sowing unrest in his country’s eastern provinces as a pretext for dispatching troops across the border.
Speaking at an emergency Cabinet meeting, Arseniy Yatsenyuk said Russia was behind the seizures of several government buildings in eastern regions that have for weeks seen a spike in secessionist sentiment.
“The plan is to destabilize the situation, the plan is for foreign troops to cross the border and seize the country’s territory, which we will not allow,” he said, adding that people engaged in the unrest have distinct Russian accents.
Arseniy Yatsenyuk said Russian troops remain stationed within 19 miles of the frontier. The city of Luhansk is just 15 miles west of Russia.
Eastern Ukraine was the political heartland of Viktor Yanukovych, the pro-Russian president who fled to Russia in February after months of protests.
About half of the region’s residents are ethnic Russians, many of whom believe Ukraine’s acting authorities are extreme Ukrainian nationalists who will oppress Russians – a claim Kiev denies.
Russia has moved large numbers of troops to areas near the Ukrainian border, and has asserted its right to intervene in Ukraine in order to protect the rights of ethnic Russians there.
Ukraine has rejected Russia’s Gazprom gas price hike and threatened legal action.
Ukraine’s interim PM Arseniy Yatsenyuk said Moscow’s hikes were a form of “economic aggression”.
His energy minister said Ukraine would try to negotiate a gas deal, but warned that if talks failed Ukrainians should prepare for Russia to cut off supplies.
Moscow says the price change is due to Kiev’s failure to pay its bills.
Russia’s state-controlled company Gazprom has raised the cost of gas to Ukraine by 81% to $485.50 (354.33 euros) from $268.50 for 1,000 cubic metres.
Ukraine has rejected Russia’s Gazprom gas price hike and threatened legal action
The increase comes amid tense diplomatic relations following Moscow’s annexation of the Crimean peninsula.
Arseniy Yatsenyuk said Russia was trying to punish the new leaders in Kiev after last month’s removal of the Moscow-backed government of President Viktor Yanukovych.
“Political pressure is unacceptable, and we are not accepting the price of $500,” he told ministers on Saturday.
“Russia was unable to seize Ukraine by means of military aggression. Now they are implementing plans to seize Ukraine through economic aggression.”
Arseniy Yatsenyuk said the price Russia was demanding was the highest in Europe, and that Ukraine was prepared to continue to buy at the previous rate of $268.50.
Energy minister Yuriy Prodan said that if no deal was reached, Ukraine would take action at an arbitration court in Stockholm.
“We are not trying to break our contract but to set up a fair price,” he said, adding that that Ukrainians should prepare for the possibility of supplies to be cut off.
The price increase could also affect gas supplies to Europe, as 40% of Russian gas to the continent travels through Ukraine.
Yuriy Prodan has said Ukraine would meet its commitments to supply gas to Europe no matter what happened.
Gazprom says Ukraine’s gas debts to Russia stand at just over $1.7 billion.
McDonald’s has decided to suspend operations at its three Crimean restaurants following ongoing diplomatic tensions in the region.
The company said that it would try to support staff, and hopes to re-open its restaurants in Simferopol, Sevastopol and Yalta as soon as possible.
McDonald’s is the second in the Crimea to alter its operations after heightened tensions between Russia and the west.
Deutsche Post said on Thursday that it was no longer accepting letters for Crimea.
“Due to operational reasons beyond our control, McDonald’s has taken the decision to temporarily close our three restaurants in Simferopol, Sevastopol and Yalta,” McDonald’s said.
A Reuters report said that the company had offered to relocate staff who wished to move to Ukraine.
According to a Kiev-based restaurant consulting group, losing the three restaurants would only result in a 5 percent loss for McDonald’s Ukraine Ltd, where the average daily revenue for each restaurant is about $8,800 (100,000 UAH).
“Calculating net income at about 30 percent of revenue, with the Crimean restaurants remaining closed the American corporation will lose $240,000 [UAH 2.7 million] in profits each month,” Olga Nasonova, director of Restaurant Consulting, told Russia Forbes.
According to Olga Nasonova, McDonald’s has invested about $10 million in the three sites.
A McDonald’s restaurant was first opened on May 24, 1997 in Kiev, and the company now has 79 restaurants in 23 cities across Ukraine.
McDonald’s is the fifth most popular restaurant for Ukrainians, according to Olga Nasonova. There are more than 300 restaurant locations in Russia.
Ukraine’s former President Viktor Yanukovych says Russia’s annexation of Crimea is “a tragedy” and he hopes it will become part of Ukraine again.
In an interview with the Associated Press and Russian channel NTV, Viktor Yanukovych also said he gave no orders to open fire on protesters in the capital, Kiev.
Viktor Yanukovych fled Kiev after protests in which more than 100 people died.
Russia annexed Crimea in southern Ukraine last month following a controversial referendum branded illegal by Kiev and the West. The peninsula has a majority ethnic Russian population.
Moscow has insisted it has no intention of invading Ukraine.
Ukraine’s former PresidentViktor Yanukovych says Russia’s annexation of Crimea is a tragedy (photo Reuters)
Viktor Yanukovych, now in Russia, said he would try to persuade Russian President Vladimir Putin to return Crimea to Ukraine.
“Crimea is a tragedy, a major tragedy,” he said.
“We must set such a task and search for ways to return to Crimea on any conditions, so that Crimea may have the maximum degree of independence possible… but be part of Ukraine.”
Viktor Yanukovych said had he remained in power, he would have tried to prevent the referendum, calling it a “form of protest” against Ukraine’s new pro-Western leaders.
More than 100 people were killed in street protests in Kiev in January and February, many of them by sniper fire, but Viktor Yanukovych said he had no role in their deaths.
He said gunfire came from the opposition camp, not from riot police, and that responsibility for the high number of deaths lay with the opposition.
“I personally never gave any orders to shoot,” he said.
“As far as I know the weapons were never given to those special troops who took part in defending the state buildings and the state bodies – they just complied with their orders.”
He added: “My principles which I always follow are that no authority, no power is worth a drop of blood.”
Unrest in Ukraine began late last year when Viktor Yanukovych rejected an association agreement with the EU in favor of closer ties with Russia.
The interim government in Kiev that took power after Viktor Yanukovych fled has scheduled a presidential and some mayoral elections for May 25.
NATO has decided to suspend all practical civilian and military cooperation with Russia.
NATO Secretary General Anders Fogh Rasmussen said Russia’s annexation of Ukraine’s Crimea region was the gravest threat to European security for a generation.
There could be no business as usual, he added.
Anders Fogh Rasmussen had earlier categorically denied reports that Russia was pulling its forces back from its border with Ukraine.
Moscow is believed to have massed tens of thousands of troops on Ukraine’s eastern border in recent days, causing alarm in Kiev and the West.
Foreign ministers from the 28-member NATO bloc, gathering in Brussels for their first meeting since Russia’s annexation of Crimea, issued a strongly worded statement in which they condemned Russia’s “illegal” annexation of Ukraine’s Crimea region.
NATO has decided to suspend all practical civilian and military cooperation with Russia
They agreed to suspend NATO co-operation with Russia in a number of bodies but added that dialogue in the NATO-Russia Council could continue, as necessary, at ambassadorial level and above “to allow us to exchange views, first and foremost on this crisis. We will review Nato’s relations with Russia at our next meeting in June”.
They are also looking at options including situating permanent military bases in the Baltic states to reassure members in Eastern Europe. Russia’s actions in Ukraine have caused concern in Estonia, Latvia and Lithuania, which were part of the Soviet Union during the Cold War.
NATO jets will take part in air patrols in the region later in a routine exercise that analysts say has taken on added significance due to the crisis. Several NATO countries, including the UK, US and France, have offered additional military aircraft.
Announcing the formal suspension of ties, Anders Fogh Rasmussen said NATO’s message was clear: it stood by its allies, it stood by Ukraine and it stood by the international system of rules that had developed in recent decades. He urged Russia to be part of a solution “respecting international law and Ukraine’s borders”.
He also said NATO would offer Ukraine greater access to alliance exercises and support the development of its military.
Answering questions from reporters, Anders Fogh Rasmussen said he expected NATO-Russia co-operation over Afghanistan – including counter-narcotics operations – to continue.
Ukrainian ministers were also in Brussels to meet their NATO counterparts. A joint NATO-Ukraine statement issued after their meeting announced that they would intensify co-operation and promote defense reforms in Ukraine through training and other programs.
In Moscow, the Russian foreign ministry warned Kiev against any attempts to join NATO, saying such efforts in the past had “led to a freezing of Russian-Ukrainian political contacts, a <<headache>> in NATO-Russia relations and… a deepening split within Ukrainian society”.
On Monday, Russian President Vladimir Putin told German Chancellor Angela Merkel he had ordered a partial withdrawal of Russian troops from the border with eastern Ukraine.
However, Anders Fogh Rasmussen told reporters: “Unfortunately, I cannot confirm that Russia is withdrawing its troops. This is not what we are seeing.”
Meanwhile, Russian energy firm Gazprom has announced an increase of the price it charges Ukraine for gas from Tuesday.
Gazprom’s chief executive Alexei Miller said the price of Russian gas for Ukraine had gone up to $385.5 per 1,000 cubic metres in the second quarter of 2014 from the previous rate of $268.5.
Alexei Miller added that Ukraine’s unpaid gas bills to Russia stood at $1.7 billion.
According to the German government, Russia’s President Vladimir Putin has ordered a “partial withdrawal” of troops from the border with Ukraine.
Vladimir Putin informed German Chancellor Angela Merkel of the move in a telephone conversation, according to her office.
Thousands of Russian soldiers are still said to be deployed along the border.
Earlier, Ukraine condemned a visit to Crimea by Russia’s PM Dmitry Medvedev and a delegation of government ministers.
Vladimir Putin has ordered a “partial withdrawal” of troops from the border with Ukraine (photo Getty Images)
A foreign ministry spokesman in Kiev said the highest-level trip to the Black Sea peninsula by officials from Moscow since its annexation by Russia was a “crude violation” of international rules.
A note protesting against the presence of an official in “the territory of another state without preliminary agreement” had been sent, he added.
Crimeans voted to leave Ukraine for Russia on March 16, in a referendum condemned as illegal by the UN General Assembly.
Dmitry Medvedev announced that he would make Crimea a special economic zone, with tax breaks and reduced bureaucracy to attract investors.
He also vowed to quickly boost salaries and pensions, and to improve education, healthcare and local infrastructure.
Tensions between Russia and the West rose after the overthrow of pro-Kremlin Ukrainian President Viktor Yanukovych in February, following months of street protests.
Russia’s subsequent decision to annex Crimea triggered a crisis in relations.
A Kremlin statement did not mention a partial withdrawal, but said Vladimir Putin and Angela Merkel had discussed “opportunities for international support for the restoration of stability” in Ukraine.
Vladimir Putin had also told Angela Merkel that Ukraine had to enact constitutional reforms to ensure that the interests of all its regions were respected, and called for measures to end the “blockade” of Trans-Dniester, the statement added.
US Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov have arrived in Paris for crisis talks on Ukraine.
The meeting was hastily arranged after President Vladimir Putin phoned President Barack Obama on Friday.
Russia has annexed Crimea and there are reports of thousands of Russian troops massed close to Ukraine’s borders.
Earlier Sergei Lavrov set out demands for a neutral and federal Ukraine, an idea Kiev called “full capitulation”.
However, Sergei Lavrov has categorically denied any plans for an invasion.
However, the Russian foreign minister has stressed Moscow will protect the rights of ethnic Russians and Russian speakers, after pro-EU protests in Kiev led to the ousting of Ukraine’s President Viktor Yanukovych.
John Kerry and Sergei Lavrov have arrived in Paris for crisis talks on Ukraine
On Sunday, the US ordered its top general in Europe to return early from a trip to Washington.
NATO’s supreme allied commander Europe, General Philip Breedlove, had been due to testify to Congress, but a Pentagon spokesman told Reuters his return was prudent “given the lack of transparency and intent from Russian leadership about their military movements across the border”.
Hours before the Paris talks were due to take place at the Russian ambassador’s residence, Sergei Lavrov told Russian state TV that Ukraine should come up with a new constitution “providing for a federal structure” and neutrality.
The Russian foreign minister said Moscow, the US and EU should act as a support group for Kiev to begin a nationwide dialogue that did not involve the “armed radicals”. Moscow claims that fascists have taken power in Ukraine, jeopardizing the safety of Russian speakers.
In an interview on Saturday, Sergei Lavrov said Russia had been deceived after being promised “there would be no movement of NATO military infrastructure closer to our borders”.
The Ukrainian foreign ministry said it deeply regretted Sergei Lavrov’s “patronizing” remarks.
“At the point of its automatic rifles, this aggressor demands only one thing – Ukraine’s full capitulation, its split and the destruction of Ukrainian statehood,” said a statement carried by Interfax-Ukraine news agency.
NATO’s outgoing Secretary-General Anders Fogh Rasmussen warned on Sunday that Russia’s government was “[flouting] the principle that every state is sovereign and free to choose its own fate”.
Vladimir Putin is also thought to be demanding that Washington accepts Crimea’s independence from Ukraine.
Separately, Moscow is keen to tackle the issue of Trans-Dniester, a pro-Russian separatist region of Moldova on the south-western border of Ukraine. It accuses Ukraine and Moldova of “blockading” the area while the EU and the US stay silent.
US officials are divided over whether Vladimir Putin is seeking to ease tensions or is still planning further military action.
The Pentagon believes Moscow has massed tens of thousands of troops close to Ukraine’s eastern border.
Food, medicines and a field hospital are said to be among the supplies moved into position, officials say, which would not be necessary for any spring military exercise.
Russian President Vladimir Putin has called President Barack Obama to discuss the US proposal for a diplomatic solution to the crisis in Ukraine, the White House announces.
Barack Obama suggested that Russia put a concrete response in writing, his spokesman said in a statement.
According to the Kremlin, Vladimir Putin suggested examining how the situation could be stabilized.
Russia’s annexation of Crimea has sparked international condemnation.
Vladimir Putin has called Barack Obama to discuss the US proposal for a diplomatic solution to the crisis in Ukraine
Barack Obama urged Vladimir Putin to avoid the build-up of forces on the Russian border with Ukraine.
The White House said the two countries’ foreign ministers would meet soon to discuss the next steps.
The US proposal was developed in consultation with Ukraine and other European countries.
Barack Obama received Vladimir Putin’s call in Saudi Arabia – the latest leg of a trip which also took him to Europe where the Ukraine crisis dominated discussions.
The Kremlin said in a statement that Vladimir Putin drew Barack Obama’s attention to “the continued rampage of extremists” in Kiev and various regions of Ukraine.
Vladimir Putin suggested examining possible steps the global community could take to help stabilize the situation, the Kremlin statement said.
Meanwhile in New York, the UN Secretary General Ban Ki-moon said he had been assured by Vladimir Putin that the Russian leader “had no intention to make any military move”.
Russia’s reported troop movements near Ukraine’s eastern border – described as a “huge military build-up” by NATO – has triggered fears that Vladimir Putin’s interest in Ukraine is not limited to Crimea.
In a new resolution, the UN General Assembly has declared the Moscow-backed referendum that led to Russia’s annexation of Crimea as illegal.
The move comes after the International Monetary Fund (IMF) agreed to a loan deal with Ukraine worth $14-18 billion.
The US Congress also passed legislation on Thursday backing a $1 billion loan guarantee for Ukraine.
Tensions are high between Russia and the West after pro-Russian troops annexed Ukraine’s southern peninsula.
The West has widely condemned the move, with President Barack Obama warning on Wednesday of “deeper” EU and US sanctions against Russia if it carried out further incursions in Ukraine.
UN General Assembly has declared the Moscow-backed referendum that led to Russia’s annexation of Crimea as illegal
One hundred countries voted in favor of approving a UN General Assembly resolution declaring the Crimean referendum on March 16 illegal and affirming Ukraine’s territorial integrity.
Eleven nations voted against, with 58 abstentions.
“This support has come from all corners of the world which shows that this (is) not only a regional matter but a global one,” Ukraine’s Foreign Minister Andriy Deshchytsia told reporters after the vote.
Russia’s ambassador to the UN, Vitaly Churkin, said “the fact that almost half” of the UN General Assembly members had not supported the resolution was “a very encouraging trend and I think this trend will become stronger and stronger”.
Given that the resolution was non-binding, the vote was largely symbolic.
But Ukraine hopes the resolution will act as a deterrent and dissuade Moscow from making further incursions into its territory.
Barack Obama said the IMF announcement, which would unlock a further $10 billion in loans for Ukraine, was a “major step forward” to help stabilize the country’s economy and meet the long-term needs of its people.
Ukraine’s interim government has decided to raise gas prices for domestic consumers by 50% in an effort to secure an International Monetary Fund (IMF) aid package.
An official at Ukraine’s Naftogaz state energy company said the price rise would take effect on May 1st, and further rises would be scheduled until 2018.
Ukrainians are accustomed to buying gas at heavily subsidized rates.
But the IMF has made subsidy reform a condition of its deal.
Ukraine currently buys more than half of its natural gas from Russia’s Gazprom, and then sells it on to consumers at below market prices.
Ukraine’s interim government has agreed to raise gas prices for domestic consumers by 50 percent
Yury Kolbushkin, budget and planning director at Naftogaz, told reporters that gas prices for district heating companies would also rise by 40% from July 1st.
IMF negotiators are still in Kiev to negotiate a package of measures worth billions of dollars to help Ukraine’s interim government plug its budget deficit and meet foreign loan repayments.
The IMF is also asking Ukraine to crack down on corruption and end central bank support for the Ukrainian currency.
On Tuesday, Ukraine’s finance minister Oleksandr Shlapak said the country was seeking $15-20 billion from the IMF.
The Financial Times has reported that a rescue package worth about $15 billion is close to being agreed, and could be announced as early as Thursday.
An agreement with the IMF is necessary to unlock further financial support from the EU and US.
Financial help is urgently required as Ukraine has been forced to plunder its foreign currency reserves, and the economy is expected to contract by 3% this year, according to the country’s finance ministry.
In the US, arguments in Congress over reforms to the IMF have held up plans to offer Ukraine $1 billion in loan guarantees.
The EU says its financial support, potentially worth 1.6 billion euros is contingent on the IMF deal being agreed.
The US and EU have decided to imposed “deeper sanctions” against Russia if there are “further incursions into Ukraine”.
President Barack Obama said “energy is obviously a central focus of our efforts”, acknowledging it “will have some impact on the global economy”.
Barack Obama was speaking after talks in Brussels with EU leaders Jose Manuel Barroso and Herman Van Rompuy.
At a news conference the three men spoke of the special relationship between the transatlantic partners.
Barack Obama said: “The world is safer and more just when Europe and America stand as one.”
Herman Van Rompuy, European Council president, called it a “crucial” relationship.
Their talks at the headquarters of the 28-nation EU bloc also covered plans to finalize a transatlantic trade partnership, as well as efforts to tackle Iran’s nuclear program and Syria’s chemical weapons.
Barack Obama praised the EU for the steps it had already taken – along with the US – to penalize Russia. These have included visa bans and asset freezes against a number of Russian officials.
Barack Obama was speaking after talks in Brussels with EU leaders Jose Manuel Barroso and Herman Van Rompuy
He said those actions were taken after Russian forces moved in to annex Crimea, and they now must consider “the potential for additional, deeper sanctions” should Moscow attempt to do the same in other parts of Ukraine.
“We recognize that in order for Russia to feel the impact of these sanctions, it will have some impact on the global economy as well as on all the countries represented here today,” Barack Obama said.
Acknowledging that some EU countries are more dependent than others on Russia for energy, he said “this entire event has pointed to the need for Europe to look at how it can further diversify its energy sources”.
Barack Obama said NATO must remain a “regular presence” in those eastern European countries who are now feeling vulnerable to possible Russian intervention. He also voiced concern at the falling defense budgets of some countries.
Herman Van Rompuy called Russia’s actions in Crimea “a disgrace in the 21st century, and we will not recognize it”.
Ukraine’s southern peninsula of Crimea was annexed by Russia earlier this month after a referendum which Kiev and the West considered illegal.
It follows the ousting of Ukraine’s pro-Russian President Viktor Yanukovych at the end of February following months of bloody protests over his decision to seek greater ties with Moscow rather than the EU.
Tensions between Russia and Ukraine remain high. Moscow accused Ukrainian officials on Wednesday of preventing Russian commercial pilots and crew from disembarking at Kiev International Airport.
This is Barack Obama’s first official visit to the EU headquarters in Brussels.
He began his trip to Belgium with a visit to a cemetery in Flanders, where US soldiers killed in World War One are buried.
He paid tribute to fallen US soldiers at the American Cemetery and Memorial in Waregem, to mark 100 years since the start of WW1. Belgian King Philippe and Prime Minister Elio di Rupo were also in attendance.
Following his talks with Herman Van Rompuy and EU Commission President Jose Manuel Barroso, Barack Obama will meet NATO Secretary-General Anders Fogh Rasmussen.
Ukrainian ultra-nationalist leader Oleksandr Muzychko has been shot dead in what officials describe as a special forces operation.
Oleksandr Muzychko, better known as Sashko Bilyi, died in a shoot-out with police in a cafe in Rivne in western Ukraine, the interior ministry said.
He was a leader of Right Sector, a far-right group which was prominent in the recent anti-government protests.
Meanwhile, Ukraine’s parliament has voted to accept the resignation of Defense Minister Ihor Tenyukh.
Ihor Tenyukh had been accused of indecision in the face of Russia’s military takeover of Crimea.
The shooting of Oleksandr Muzychko happened just hours after Russian Foreign Minister Sergei Lavrov had held talks with his Ukrainian counterpart Andriy Deshchytsia – their first meeting since Russia’s move into Crimea triggered a diplomatic crisis.
Ukraine’s Deputy Interior Minister Vladimir Yevdokimov said Oleksandr Muzychko died after opening fire at police and Sokol special forces, who had raided a cafe to arrest him and fellow ultra-nationalists. The authorities described Oleksandr Muzychko as a criminal gang leader.
Oleksandr Muzychko, better known as Sashko Bilyi, died in a shoot-out with police in a cafe in Rivne in western Ukraine
During the raid, Oleksandr Muzychko fired at police as he was trying to flee, wounding one of them. Police then returned fire and captured him and three others in his “criminal gang”, Vladimir Yevdokimov said.
“He was still alive as they were arresting him – but then the paramedics, called to the scene, found that he had died,” Vladimir Yevdokimov said.
The three arrested gang members have been taken to Kiev for questioning.
A Right Sector organizer in Rivne has now threatened revenge for the killing of Oleksandr Muzychko, saying he had not been summoned by investigators.
“We will avenge ourselves on [Interior Minister] Arsen Avakov for the death of our brother. The shooting of Sashko Bily is a contract killing ordered by the minister,” said Roman Koval of the Right Sector in Rivne region, quoted by the Ukrayinska Pravda website.
Earlier, Ukrainian lawmaker Oles Doniy, gave a different version of events. He said two cars had forced Oleksandr Muzychko’s car to stop, and he had then been dragged into one of the other cars. Later his body was found dumped, his hands tied behind his back and two bullet wounds in his heart, Oles Doniy wrote overnight on his Facebook page.
Correspondents say Oleksandr Muzychko acquired notoriety in Ukraine after he was filmed brandishing an AK-47 assault rifle at a town hall session in western Ukraine, and then harassing a local prosecutor. After that, in February, the Ukrainian interior minister condemned his behavior and promised to investigate.
Moscow says the activities of Right Sector and other Ukrainian nationalist groups pose a threat to the large Russian-speaking minority in Ukraine. President Vladimir Putin gave that as one of his reasons for intervening in Crimea.
However, some commentators say Russia has deliberately whipped up such fears, and that the influence of Right Sector in Ukrainian politics is exaggerated.
Earlier, Russian authorities issued an arrest warrant for Oleksandr Muzychko, accusing him of atrocities against Russian soldiers in Chechnya.
Russia and Ukraine are holding talks for the first time since Russia’s move into Crimea triggered a diplomatic crisis.
Russian Foreign Minister Sergei Lavrov says his country is unfazed by the prospect of being expelled from the G8.
Other members of the group of industrialized countries have agreed not to hold a planned summit in Russia.
The move comes as Ukrainian troops are leaving Crimea after Russian forces seized military bases in the region.
Earlier this month, Russia annexed Crimea after a referendum considered illegal by Kiev and the West.
Russian Foreign Minister Sergei Lavrov has held talks with his Ukrainian counterpart, Andriy Deshchytsia, for the first time since Crimea annexation
Sergei Lavrov met Ukraine’s interim Foreign Minister Andriy Deshchytsia on the sidelines on a security summit in The Hague on Monday.
“We set forth our vision to establish good national dialogue taking into account all residents of Ukraine,” Sergei Lavrov told a news conference.
He also said he saw “no great tragedy” if Moscow was expelled from the Group of Eight (G8) club of leading nations for its annexation of Ukraine’s Crimean peninsula.
“If our Western partners think that this format has outlived itself, then so be it. At the very least, we are not trying to cling on to this format,” he told reporters.
The remaining members of the powerful body, who also met on the sidelines of the nuclear summit, agreed that the planned G8 summit in Russia would be called off because Russia’s aggression toward Ukraine.
Several G8 members have also called for Russia’s membership of the group to be suspended.
Secretary of State John Kerry also met Sergei Lavrov on Monday and expressed “strong concern” about the massing of Russian forces on the Ukrainian border, Reuters quoted a senior US state department official as saying.
Supreme Allied Commander Europe General Philip Breedlove has issued a warning about the build-up of Russian forces on Ukraine’s border.
US Air Force General Philip Breedlove said NATO was in particular concerned about the threat to Moldova’s Trans-Dniester region.
Russia said its forces east of Ukraine complied with international agreements.
The build-up has been allied with Russia’s annexation of Crimea from Ukraine, following the removal of Ukraine’s pro-Moscow president.
Moscow formally annexed Crimea after the predominantly ethnic-Russian region held a referendum which backed joining the Russian Federation.
Kiev and the West have condemned the vote as “illegal”.
Russian flags have now been hoisted at 189 Ukrainian military units and facilities in Crimea, the Interfax news agency reports.
Supreme Allied Commander Europe General Philip Breedlove has issued a warning about the build-up of Russian forces on Ukraine’s border
On Sunday, Ukraine’s National Security and Defense Council chief Andriy Parubiy told a big rally in Kiev: “The aim of [President Vladimir] Putin is not Crimea, but all of Ukraine… His troops massed at the border are ready to attack at any moment.”
The comments by Gen. Philip Breedlove came at an event held by the German Marshall Fund think-tank in Brussels.
He said: “The [Russian] force that is at the Ukrainian border now to the east is very, very sizeable and very, very ready.”
He added: “There is absolutely sufficient force postured on the eastern border of Ukraine to run to Trans-Dniester if the decision was made to do that and that is very worrisome.
“Russia is acting much more like an adversary than a partner.”
Trans-Dniester is a narrow strip of land between Dniester River and Ukraine’s south-western border and it proclaimed independence from Moldova in 1990.
The international community has not recognized its self-declared statehood.
As Crimea was annexed, the Trans-Dniester Supreme Soviet sent a request asking to join the Russian Federation.
On Sunday, Russia’s Deputy Defense Minister Anatoly Antonov told the Itar-Tass agency: “The Russian Defense Ministry is in compliance with all international agreements limiting the number of troops in the border areas with Ukraine.”
Russia’s ambassador to the EU warned the US against sending troops or military aid to Ukraine, saying it would be a “grave mistake”.
Russian troops backed by armoured vehicles stormed a Ukrainian airbase in Crimea.
Reports say at least one person was injured during the assault on Belbek base, near Sevastopol. The base is now said to be under Russian control.
Earlier, several hundred unarmed protesters seized a Ukrainian naval base at Novofedorivka, western Crimea.
Pro-Russian militia have also been seizing Ukrainian navy ships.
Ukrainian troops in Crimea feel beleaguered and abandoned by their commanders in Ukraine.
On Friday, Russian President Vladimir Putin signed a law formalising Russia’s takeover of Crimea from Ukraine, despite fresh sanctions from the EU and the US.
In Belbek, two armoured personnel carriers burst through the wall of the base followed by Russian troops firing weapons in the air.
At least one person was injured during the assault on Belbek base, near Sevastopol
An ambulance was then seen entering the base amid reports that at least one person had been injured.
The Ukrainian soldiers were later gathered at the base main square in front of the heavily armed Russian troops.
The storming followed an ultimatum by the Russians to surrender.
The Belbek base commander earlier told the few dozen troops still there to shoot in the air if they were attacked.
Ukraine’s military chiefs deny this, saying each unit in Crimea has been issued with clear orders on what to do if attacked.
In Novofedorivka, attackers threw smoke bombs at the base.
Pro-Russian militia – backed by Russian forces – have already seized a number of Ukrainian bases in the southern peninsula.
Russian troops have taken over control of Crimea following last month’s overthrow of Ukrainian President Viktor Yanukovych after mass street protests.
The Kremlin says it acted to protect its “compatriots” in Crimea from “fascists” moving in from the mainland Ukraine.
Kiev denies the claim, accusing Moscow of “blatant lies” to justify the land grab.
One hundred international monitors will be sent to Ukraine, after Russian diplomats dropped their objections.
The Organization for Security and Co-operation in Europe (OSCE), will send advance teams within 24 hours to areas including the violence-hit south-eastern areas.
But the monitoring team is not expected to go to Crimea, which was taken over by Russia last month.
Russian President Vladimir Putin signed a law formalizing Crimea’s annexation on Friday, despite EU and US sanctions.
The 57-member OSCE reached a deal on Friday evening.
The Vienna-based group said that initially 100 civilian observers would deploy for six months in nine regions of Ukraine.
Up to 400 extra personnel could be deployed if necessary.
The areas the monitors are due to visit include Odessa, Donetsk, Dnepropetrovsk, and Luhansk, which have been recently rocked by clashes between pro-Ukrainian and pro-Russian activists.
The situation remains tense on the long Ukrainian-Russian border
“The decision itself calls for monitors to be deployed within 24 hours,” said Daniel Baer, the US ambassador to the OSCE.
The US said in a statement that “it is clear that with the adoption of this decision this mission has a mandate to work in Crimea and in all other parts of Ukraine”.
But Russian envoy Andrey Kelin responded by saying that Crimea had now become part of Russia and therefore the mission had “no mandate” to go there.
Western diplomats had blamed Russia for several failed attempts to agree such a mission in recent days.
Earlier this month OSCE monitors had to abandon their visit to Crimea after warning shots were fired at the border.
German Foreign Minister Frank-Walter Steinmeier said Friday’s deal was “not the end of the crisis”.
Earlier on Friday, the EU added 12 people to an existing list of 21 officials involved in Russia’s annexation of Crimea.
They include Deputy PM Dmitry Rogozin and two close aides of Vladimir Putin, Sergey Glazyev and Vladislav Surkov.
The speakers of Russia’s two houses of parliament, Valentina Matviyenko and Sergei Naryshkin – both at Vladimir Putin’s side as he signed the Crimea law – were also included.
While the list targets several figures close to Vladimir Putin, it does not hit his inner circle as hard as the sanctions announced by the US on Thursday.
In retaliation, Russia ordered travel bans and asset freezes for nine prominent US officials and lawmakers.
Senator John McCain, one of those targeted, joked in a tweet that he would have to cancel his spring break in Siberia.
Vladimir Putin said Moscow would not retaliate for the latest EU sanctions – although the Russian foreign ministry said there would be a response.
In Crimea itself, forces allied to Russia have been seizing Ukrainian ships and taking over military bases.
The new authorities in Crimea have invited those serving in the Ukrainian forces on the peninsula to switch sides and join Russian forces.
Russian President Vladimir Putin has signed a law formalizing the takeover of Crimea from Ukraine, despite fresh sanctions from the EU and the US.
The EU’s latest measures target 12 people involved in Russia’s annexation of Crimea.
Earlier, Ukraine and the EU signed an accord forging closer political ties.
Separately, the Organization for Security and Co-operation in Europe (OSCE) has agreed to send monitors to Ukraine, after Russia dropped objections.
The six-month mission will initially consist of 100 international civilian monitors, who will be employed in nine regions of Ukraine – including the south-eastern areas rocked by violence between pro-Ukraine and pro-Russian activists.
Vladimir Putin has signed a law formalizing the takeover of Crimea from Ukraine (photo Reuters)
The observers will not go to Crimea but German Foreign Minister Frank-Walter Steinmeier said the decision was “a step that helps to support our de-escalation efforts”.
Western diplomats had blamed Russia for several failed attempt to agree such a mission to help defuse the tense situation.
In Brussels, EU leaders also said they would step up efforts to reduce energy dependency on Russia.
The EU’s new sanctions add to an existing list of 21 officials affected by travel bans and asset freezes.
They include Deputy PM Dmitry Rogozin and two close aides of Vladimir Putin, Sergei Glazyev and Vladislav Surkov.
The speakers of Russia’s two houses of parliament, Valentina Matviyenko and Sergei Naryshkin – both at Vladimir Putin’s side as he signed the Crimea law – are also included.
While the list targets several figures close to the Russian president, it does not hit his inner circle as hard as the sanctions announced by the US on Thursday.
Russian stock market fell sharply on Friday as investors weighed the impact of western sanctions over Ukraine.
The MICEX index, which is priced in roubles fell as much as 3% and the RTS, which is priced in dollars fell 3.6%
Shares slumped after President Barack Obama said sanctions might be extended to key parts of the Russian economy if Russia took further action in Ukraine.
Russia’s mining, defense and natural resources sectors could all be targets.
Stocks recovered some ground during the day after President Vladimir Putin moved to restore calm following the introduction of asset freezes and visa bans by the US against high ranking Russian officials.
The MICEX closed down 1% and the RTS index was down 1.45% at the end of the day.
Russia’s financial services industry found itself under the most pressure.
Visa and Mastercard said earlier on Friday they had stopped providing services to two Russian banks, Rossiya and SMP Bank.
Rossiya, described by the US as Russia’s 15th largest bank, has assets of $12 billion. It said card payment services for its clients had been stopped without notification.
US officials said Bank Rossiya, which is linked to a number of Russian businessmen, had been sanctioned, and would be “frozen out” from the dollar.
Russian stock market fell sharply as investors weighed the impact of western sanctions over Ukraine
They described Rossiya as a “personal bank for senior officials of the Russian Federation”.
Visa and Mastercard confirmed they had stopped providing services to SMP Bank without providing notification.
In a statement SMP, which is Russia’s 39th biggest bank with $5 billion in assets, called Visa and Mastercard’s actions “illegitimate” because its owners, rather than the bank itself, were the subject of sanctions.
The bank’s co-owners, billionaire brothers Arkady and Boris Rotenberg, are childhood friends of Vladimir Putin and were hit with sanctions on Thursday.
Vladimir Putin said Bank Rossiya was “just an average bank” which had “nothing to do” with events in Crimea.
He added he did not hold an account with the bank, but promised to open one “first thing on Monday” and asked for his salary to be transferred there.
Vladimir Putin also ordered Russia’s central bank to “take the bank’s clients under protection and provide all possible assistance to them.”
Russia’s central bank said the blacklisting of Rossiya and its transactions by the US did “not have a serious bearing on the lender’s financial stability”.
Although only banks with connections to high ranking Russian officials have been targeted Russian bank shares were broadly lower.
Shares in Sberbank, Russia’s largest bank, closed 1.17% lower – having fallen 2.9% earlier on Friday, while shares in VTB Bank were 2.61% lower after falling 4.3% earlier in the day.
Other sectors were also hit. Gas giant Gazprom was down 0.9%, oil firm Lukoil ended the day 1.36% higher. Russian steel company NLMK closed 1.94% lower.
Shares in gas producer Novatek closed down 9.63%. The company is part owned by Gennady Timchenko, a shareholder in Bank Rossiya and one of the wealthy Russian businessmen targeted by Western sanctions.
Ratings agencies S&P and Fitch warned they were changing their outlook for the Russian economy to “negative” from “stable” – the first stage before a possible downgrade in the country’s credit rating – because of the potential impact of sanctions.
President Vladimir Putin’s spokesman Dmitry Peskov criticised the move, suggesting it was not an objective decision and that somebody “ordered” it.
Russia’s credit rating is currently BBB.
Meanwhile the rouble was stable on Friday having previously fallen sharply on Thursday evening in response to the announcement of further US sanctions.
European Union leaders have signed an agreement on closer relations with Ukraine, in a show of support following Russia’s annexation of Crimea.
Ukraine’s interim Prime Minister Arseniy Yatsenyuk and the EU signed the deal in Brussels.
Pro-Moscow President Viktor Yanukovych’s abandonment of the deal had led to deadly protests, his removal and Russia taking over Crimea.
On Friday, Russia’s upper house unanimously approved the treaty on Crimea joining the Russian Federation.
The EU Association Agreement is designed to give Ukraine’s interim leadership economic and political support.
EU President Herman Van Rompuy said in a statementthat the accord “recognizes the aspirations of the people of Ukraine to live in a country governed by values, by democracy and the rule of law”.
Ukraine’s interim Prime Minister Arseniy Yatsenyuk and the EU signed the deal in Brussels (photo AP)
The move comes hours after the EU broadened its sanctions over Russia’s annexation of Crimea.
It added 12 individuals to an earlier list of 21 who now face asset freezes and travel bans.
The US on Thursday added to its own list and also targeted Rossiya Bank.
Russian Foreign Minister Sergei Lavrov said on Friday the international sanctions were “absolutely unlawful”.
However, Russian President Vladimir Putin said after talks with officials in Moscow that Russia would not take an immediate reciprocal action.
“I think we should refrain from taking steps in response for now,” Interfax quoted Vladimir Putin as saying.
However, Russian PM Dmitry Medvedev said Ukraine should pay back $11 billion in gas discounts as an agreement linked to the lease of the Sevastopol naval base in Crimea was now invalid.
Two credit rating agencies have now downgraded Russia’s outlook to negative from stable.
In Moscow, all 155 senators present in the upper house of parliament voted to ratify the treaty incorporating Crimea into the Russian Federation.
President Vladimir Putin is expected to complete the process by signing the treaty at a ceremony later on Friday.
EU leaders are due to meet in Brussels to discuss further targeted sanctions in response to Russia’s annexation of Crimea from Ukraine.
It comes as UN chief Ban Ki-moon visits Russian leaders in Moscow to urge a diplomatic solution to the crisis.
Tensions remain high in Crimea – pro-Russia forces seized two bases on Wednesday, including Ukraine’s navy headquarter in Sevastopol.
Ukraine’s navy commander was detained, but has now been released.
Crimean leaders signed a treaty with Moscow on Tuesday to absorb the peninsula – an autonomous republic in southern Ukraine – into Russia, following a disputed referendum on Sunday.
EU leaders are due to meet in Brussels to discuss further targeted sanctions in response to Russia’s annexation of Crimea from Ukraine (photo AFP)
Russia’s Foreign Minister Sergei Lavrov said the political process was expected to be completed this week, Russia’s Interfax news agency reports.
The lower house will vote on ratifying the Crimea treaty on Thursday, and the upper house on Friday. The measure is expected to sail through.
Sergei Lavrov said Russia was protecting the rights of Russians, and would continue to “insist their rights and freedoms are observed fully in the countries where [our] compatriots are living”.
Thousands of Ukrainian soldiers and sailors remain trapped inside military bases on the peninsula, surrounded by heavily armed pro-Russia forces.
Earlier this week, a Ukrainian serviceman and a member of the pro-Russia self-defense force were killed in an incident in Simferopol.
The crisis comes nearly a month after Ukraine’s pro-Russian President Viktor Yanukovych was replaced by Western-leaning interim authorities.
Western leaders have denounced Russia’s actions in Crimea as a violation of Ukraine’s sovereignty and a breach of international law.
The EU, the US and a number of other countries have already imposed sanctions on Russian and Ukrainian individuals.
Washington ordered the freezing of assets and travel bans on 11 individuals, while the EU imposed similar sanctions on 21 people.
EU leaders are expected to discuss extending their sanctions on Thursday, to possibly include political and military figures close to Russian President Vladimir Putin.
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