The U.S. and the European Union imposed new economic sanctions against Russia Wednesday for its involvement in the fighting in Ukraine.
President Barack Obama announced the penalties, which target two major Russian energy firms, a pair of powerful financial institutions, and eight arms companies.
Obama said Russian leaders must see that their actions supporting rebels "have consequences."
"What we are expecting is that the Russian leadership will see once again that its actions in Ukraine have consequences, including a weakening Russian economy and increasing diplomatic isolation," Obama said from the White House.
Russian President Vladimir Putin shrugged off the sanctions, saying the U.S. is hurting itself by penalizing American companies doing business in Russia.
"They are undermining the positions of their energy companies," Putin told reporters, through a translator, in Brazil. "They made one mistake and now they insist on making another one."
The E.U. said it was asking the European Investment Bank to sign no new financing agreements with Moscow. The E.U. also agreed to suspend financing of the new European Bank for Reconstruction and Development Operations in Russia.
Russia accuses the U.S. of "bullying" and vows to push back against the sanctions.