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They are “meant as a strong warning,” Herman Van Rompuy, the president of the European Council, said in a statement on Tuesday that was joined by José Manuel Barroso, the president of the European Commission. “Destabilizing Ukraine, or any other Eastern European neighbouring state, will bring heavy costs,” the statement said.

President Barack Obama said Russia’s economy would continue to suffer until it reversed course. “Today is a reminder that the United States means what it says and we will rally the international community in standing up for the rights and freedom of people around the world,” he told reporters on the South Lawn of the White House.

Obama said the fact that Europe was now joining the U.S. in broader measures means they “will have an even bigger bite.” But in response to reporters’ questions, he said “it’s not a new Cold War” between the two countries and made clear he was not considering providing arms to Ukraine’s government – as some Republicans have suggested – as it tries to put down the pro-Russian insurgency.

“They are better armed than the separatists,” he said. “The issue is, ‘How do we prevent bloodshed in eastern Ukraine?’ We’re trying to avoid that. And the main tool that we have to influence Russian behaviour at this point is the impact that it’s having on its economy.”

The U.S. and European actions were intended to largely, though not precisely, match each other. The U.S. cut off three more Russian banks, including the giant VTB Bank, from medium- and long-term capital markets and barred Americans from doing business with the United Shipbuilding Corp., a large state-owned firm created by Putin. The Obama administration also formally suspended export credit and development finance to Russia.