Russia has failed to take steps to end the Ukraine conflict , President Barack Obama said Wednesday in announcing expanded sanctions targeting two banks , two energy companies , Ukraine separatists and defense companies . European Union leaders also said they intended to increase sanctions , signaling growing Western concern over Russia 's continued support for separatists battling the Ukrainian military in the country 's eastern region . `` We have to see concrete actions , and not just words that Russia in fact is committed to trying to end this conflict along the Russia-Ukraine border , '' Obama told reporters at the White House . With the new sanctions , `` what we are expecting is that the Russian leadership will see once again that its actions in Ukraine have consequences , including a weakening economy , and increasing diplomatic isolation , '' the President said . His Russian counterpart , Vladimir Putin , warned that the sanctions were harming ties between the two nations . `` They generally have a boomerang effect and , without a doubt , in this case , are driving the Russian-U.S. relations into a stalemate and seriously damaging them , '' he said , according to a Kremlin transcript of his remarks to reporters on a visit to Brazil . `` I am certain that this is harmful to the U.S. Administration and American people 's long-term strategic national interests . '' He accused the United States of pushing the Ukrainian authorities toward a continued conflict , whereas Russia wants to see an immediate end to hostilities and a negotiated solution involving all sides , he said . Ukrainian President : Peace depends on Putin 's mood . The latest U.S. sanctions build on earlier steps by targeting two major Russian banks -- Gazprom Bank and VEB -- and two energy companies -- Novotek and Rosneft . They will not be able to get new medium- and long-term financing in the United States , senior administration officials told reporters in a conference call . In addition , the new sanctions freeze any U.S. assets and prohibit American business contacts for eight Russian arms companies that make weapons , including small arms , mortars and surface-to-air missiles . One of the eight is the Kalashnikov Concern , maker of the AK-47 and other arms . Also on the list : Four Russian government officials , including the minister of Crimean affairs , along with the self-styled Luhansk People 's Republic and Donetsk People 's Republic leading the separatist campaign in eastern Ukraine , and Aleksandr Borodai , the self-declared `` prime minister '' of the Donetsk group . Targeting the separatist groups that simulate government structures prevents them from seeking financing , the senior administration officials noted . Earlier this year , the United States and Europe imposed a range of sanctions in response to Russia 's annexation of Crimea this spring and massing of troops along its eastern border with Ukraine . The earlier sanctions included asset freezes and travel bans . 19 Ukrainian troops killed in rocket attack , military says . Russia and Ukraine have since been engaged in a tense standoff , including clashes between pro-Russian separatists and Ukrainian forces in the Donetsk and Luhansk regions . `` I 've repeatedly made it clear that Russia must halt the flow of weapons and fighters across the border into Ukraine , that Russia must urge separatists to release their hostages and support a cease-fire , that Russia needs to pursue internationally-mediated talks , and agree to meaningful monitors on the border , '' Obama said . Russia has failed to do any of those steps , he added . Ukraine 's government in Kiev has accused Russia of allowing weapons and military equipment , including tanks , to cross the border illegally into the hands of pro-Russian separatists . The senior administration officials who briefed reporters also leveled the same accusation . Meanwhile , the Pentagon said on Wednesday Russia now had 12,000 troops on the border with Ukraine , as well as some heavy weapons . The troop numbers had fallen to about 1,000 previously from a high of an estimated 40,000 forces earlier this year . Fast Facts : Ukraine .
Vladimir Putin says U.S. sanctions are pushing Russia-U.S. relations into a stalemate . President Barack Obama says Russia failed to take steps to end Ukraine conflict . New sanctions target Russian banks , energy , defense firms , as well as Ukraine separatists . The Pentagon says Russia has increased troops at Ukraine 's border .