The US imposes heavy sanctions on Russia.

The U.S. will halt exports of certain energy products and technologies to Russia and freeze export credits to Russia.

Key Russian sectors such as finance, energy, and defense have become targets of what are considered the strongest US sanctions since the Ukraine crisis began. However, the US insists this is not the start of a new Cold War.

Speaking at the White House this morning, July 29 (Vietnam time), US President Barack Obama announced that the US will halt exports of certain energy products and technologies to Russia, and will also freeze export credits and financing for economic development projects in Russia.

US President Obama warns Russia will pay an even higher price (Photo: AP)

According to the sanctions announced by President Obama, American companies and citizens are prohibited from providing financing to three major Russian banks: Bank of Moscow, Agricultural Bank of Russia, and VTB Bank, effectively closing the door to the US financial market for these three banks. The sanctions also target United Shipbuilding Corporation, a Russian defense technology company.

Previously, the European Union (EU) had also agreed to sanction eight individuals close to Russian President Vladimir Putin and restrict access to EU capital markets for three Russian financial institutions. The EU sanctions would also freeze new arms deals between Russia and Europe, ban the export of goods that could be used for both civilian and military purposes, and limit the export of energy equipment to Russia. If implemented simultaneously, these would be the strongest sanctions imposed by the US and Europe on Russia since the Cold War.

President Obama said: "The United States is working closely with Europe, and therefore, the sanctions announced today will have a greater impact. The sanctions we have imposed have further weakened the Russian economy."

President Obama warned that if Russia continues on its current path, it will pay an even higher price. He stated that foreign investors will withdraw approximately $100 billion from Russia in the near future, while economic development projects in Russia are shrinking to near zero.

The US President stated: “Russia is once again isolating itself in the international community, reversing decades of progress it has made. This is what Russia, and specifically President Putin, has chosen.”

However, President Obama insisted that the latest sanctions were not a sign of a new Cold War between the West and Russia, but rather a very specific issue related to Russia's unwillingness to acknowledge that Ukraine could forge its own path.

Obama stated that the U.S. will continue to pursue a diplomatic solution to the Ukraine issue, but it is crucial that Russia understands that the path to this solution is one that respects Ukraine's independence, sovereignty, and territorial integrity.

According to VOV