Barack Obama: Russia sanctions are not new 'Cold War'

President Barack Obama says new economic sanctions against key sectors of the Russian economy to force President Vladimir Putin to end his support for Ukrainian rebels do not represent a "new Cold War"

President Barack Obama escalated US economic sanctions against Russia yesterday for its aggression against Ukraine but dismissed suggestions the growing chill in US-Russian relations marked the start of a new Cold War.

The US and the European Union, in a carefully coordinated action, announced targeted new sanctions against Russian banks, energy and defense firms.

It was the West's most serious response yet to what it calls Russian instigation of and continuing support for the separatist uprising in the east and the shootdown of a Malaysian passenger jet on July 17 over eastern Ukraine.

Mr Obama, speaking at the White House, said the sanctions would have a "greater impact on the Russian economy than we've seen so far" in a drive to force Moscow to stop backing the separatists.

Until now, Europe had stopped short of tougher steps against Russia for fear of retaliation. Mr Obama said the new sanctions were a sign of "the waning patience Europe has with nice words from President Putin that are not matched by actions."

Senior US officials voiced growing alarm about a Russian troop buildup on the border with eastern Ukraine and a continued supply of heavy weaponry to the separatists.

These are signs that, so far at least, the sanctions are not forcing Putin to back down despite the damage the sanctions are doing to the Russian economy.

"It's not a new Cold War," Mr Obama said "What it is, is a very specific issue related to Russia's unwillingness to recognize that Ukraine can chart its own path."