U.S. President Barack Obama speaks at the League of Conservation Voters Capital Dinner at the Ronald Reagan Building and International Trade Center in Washington June 25, 2014. REUTERS/Kevin Lamarque (UNITED STATES - Tags: POLITICS)
U.S. President Barack Obama speaks at the League of Conservation Voters Capital Dinner at the Ronald Reagan Building and International Trade Center in Washington June 25, 2014. Reuters/Kevin Lamarque

The United States and the European Union announced stricter sanctions against Russia on Tuesday, July 29.

According to U.S. President Barack Obama, the latest sanctions would have a much stronger impact on Russia's economy than what earlier sanctions. He said that it would take a "bigger bite" on the economy of the country which suffered sanctions earlier after its controversial annexation of Crimea.

Now that pro-Russian separatists are even stronger, they allegedly shot down Malaysian Airlines flight MH17, killing 298 people on board. The more recent sanctions were announced as a reply to Russia's involvement in the shoot-down and subsequent interference of the investigation. Obama said that the latest sanctions would "ratchet up the pressure" against Vladimir Putin's country even further. "In other words, today Russia is once again isolating itself from the international community, setting back decades of genuine progress," Obama said.

Obama's address on the present political crisis in Ukraine came at 2:50 pm ET on Tuesday. He was talking to the reporters on the White House's iconic South Lawn. According to White House Press Secretary Josh Earnest, the details of Tuesday's sanctions would probably be revealed later in the afternoon.

This may be the occasion when Russia faces the strongest resistance in Europe and the U.S. since the Cold War. Five major European national leaders, along with Obama, agreed on imposing a new set of sanctions against Russia which allegedly continued to interfere with Ukraine. Even though Russia's involvement in Ukraine's internal issues has always been criticised by the West, Russia's role in the shoot-down of MH17, killing several international passengers is thought to be a key point in the timeline of the Russia-West conflict.

According to new sanctions, Russia is expected to have limited access to the capital markets in Europe. According to a European official, the ban will be imposed on eight allies of Russia and three other entities, CNN reported. Further details of the ban will possibly be disclosed on Wednesday.

Contact the writer: s.mukhopadhyay@ibtimes.com.au