"I have said from the very beginning of this crisis that we want to see a negotiated political solution that respects Ukraine's sovereignty and territorial integrity. Together with G-7 and European partners and our other Allies, we have made it clear that we are prepared to impose mounting costs on Russia," Obama said in a statement.

US and EU are implementing these new measures in light of Russia's actions to further destabilize Ukraine over the last month, including through the presence of heavily armed Russian forces in eastern Ukraine, he said.

"We are watching closely developments since the announcement of the ceasefire and agreement in Minsk, but we are yet to see conclusive evidence that Russia has ceased its efforts to destabilize Ukraine," he said.

Obama said that US and EU will deepen and broaden sanctions in Russia's financial, energy and defense sectors.

"These measures will increase Russia's political isolation as well as the economic costs to Russia, especially in areas of importance to (Russian) President (Vladimir) Putin and those close to him," Obama said.

The Obama Administration will outline the specifics of these new sanctions on Friday.

Reiterating that the international community continues to seek a genuine negotiated solution to the crisis in Ukraine, Obama said he encourages Putin to work with Ukraine and other international partners within the context of the Minsk agreement and without setting unreasonable conditions to reach a lasting resolution to the conflict.

"If Russia fully implements its commitments, these sanctions can be rolled back. If, instead, Russia continues its aggressive actions and violations of international law, the costs will continue to rise," Obama said.

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