(VOVworld) – The US will block the exports of specific goods and technologies to the Russian energy sector and suspend credits and financing for economic development projects in Russia. US President Barack Obama told reporters at the White House on Wednesday that the newly announced sanctions will prohibit US companies and citizens from trading with 3 major Russian banks namely the Bank of Moscow, the Russian Agriculture Bank, and the VTB Bank. The economic measures also target the United Shipbuilding Corporation, a Russian defense technology company. This is considered the most severe punishment by the US since the Ukrainian crisis broke out.

President Obama said: “Because we’re closely coordinating our actions with Europe, the sanctions we are announcing today will have even a bigger bite. Russia’s actions in Ukraine and the sanctions we are to impose have made a weak Russian economy even weaker.”

Obama noted that foreign investors will withdraw 100 billion USD from Russia in the future. But he said the new sanctions are not a sign of a new Cold War between the West and Russia.

President Barack Obama speaks to reporters about new sanctions imposed on Russia. (Photo: Reuters)

On Tuesday, the European Union agreed on sanctions against several Russia’s financial organizations, limiting their approach to EU capital. The sanctions will block new arms contracts between Russia and the Europe and ban the exports of energy appliances and goods to Russia that can be used for both military and civilian purposes. If imposed simultaneously, these sanctions will be the hardest that the US and Europe have imposed on Russia since the Cold War.