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Ukraine conflict: Russia faces more sanctions, warns G7 Ukraine conflict: Russia faces more sanctions, warns G7
(35 minutes later)
G7 leaders say Russia will face further economic sanctions if it continues to support rebels in Ukraine.G7 leaders say Russia will face further economic sanctions if it continues to support rebels in Ukraine.
In a statement on Wednesday, the group said Russia had undermined "Ukraine's sovereignty, territorial integrity and independence."In a statement on Wednesday, the group said Russia had undermined "Ukraine's sovereignty, territorial integrity and independence."
The warning came after the EU added eight more Russians to its sanctions.The warning came after the EU added eight more Russians to its sanctions.
Earlier, Russia described new US and EU sanctions as "destructive and short-sighted", and said they would lead to higher energy prices in Europe.Earlier, Russia described new US and EU sanctions as "destructive and short-sighted", and said they would lead to higher energy prices in Europe.
The G7 group of economic powers includes the United States, Canada, France, Germany, Italy, Japan and Britain.The G7 group of economic powers includes the United States, Canada, France, Germany, Italy, Japan and Britain.
Its leaders said Russia could still "choose the path of de-escalation," but warned President Putin that he would face greater economic costs if he continued to back Ukrainian separatists.Its leaders said Russia could still "choose the path of de-escalation," but warned President Putin that he would face greater economic costs if he continued to back Ukrainian separatists.
They also called on all sides to establish a ceasefire at the crash site of the Malaysian Airlines jet that was shot down on 17 July in eastern Ukraine.They also called on all sides to establish a ceasefire at the crash site of the Malaysian Airlines jet that was shot down on 17 July in eastern Ukraine.
Russia has come under increased pressure to end its support for the rebels, who Western governments believe were behind the downing of MH17, killing all 298 people on board.Russia has come under increased pressure to end its support for the rebels, who Western governments believe were behind the downing of MH17, killing all 298 people on board.
Mr Putin has also been accused by the US and EU of supplying heavy weapons to the rebels - a charge his government has denied.Mr Putin has also been accused by the US and EU of supplying heavy weapons to the rebels - a charge his government has denied.
New US sanctions
On Tuesday, the US announced new economic sanctions against Russia, widening their scope to include three key sectors of the economy - energy, arms and finance.On Tuesday, the US announced new economic sanctions against Russia, widening their scope to include three key sectors of the economy - energy, arms and finance.
The EU is also expanding its sanctions, targeting the oil sector, defence equipment and sensitive technologies.The EU is also expanding its sanctions, targeting the oil sector, defence equipment and sensitive technologies.
Details of new EU sanctions are due to be published on Thursday.Details of new EU sanctions are due to be published on Thursday.
Several members of Mr Putin's inner circle are among the eight people the EU announced it was adding to sanctions on Wednesday.
They include Arkady Rotenberg, Mr Putin's former judo sparring partner, and Yuri Kovalchuk, chairman of the Rossiya bank and a long-standing friend of the president.
Russia's foreign ministry said the US sanctions would aggravate relations between the two countries, and attacked new EU restrictions as "thoughtless and irresponsible".Russia's foreign ministry said the US sanctions would aggravate relations between the two countries, and attacked new EU restrictions as "thoughtless and irresponsible".
In other developments in Ukraine on Wednesday:
Russian press reacts to sanctionsRussian press reacts to sanctions