Today, and building on the measures we announced two weeks ago, the United States is imposing new sanctions on key sectors of the Russian economy: energy, arms, and finance. We're blocking the exports of specific goods and technologies to the Russian energy sector; we're expanding our sanctions to more Russian banks and defense companies; and we're formally suspending credit that encourages exports to Russia and financing for economic development projects in Russia.

At the same time, the European Union is joining us in imposing major sanctions on Russia, its most significant and wide-ranging sanctions to date. In the financial sector, the EU is cutting off certain financing to state-owned banks in Russia. In the energy sector, the EU will stop exporting specific goods and technologies to Russia, which will make it more difficult for Russia to develop its oil resources over the long term. In the defense sector, the EU is prohibiting new arms imports and exports, and is halting the export of sensitive technology to Russia's military users. And because we're closely coordinating our actions with Europe, the sanctions we're announcing today will have an even bigger bite.

Now Russia's actions in Ukraine and the sanctions we've already imposed have made a weak Russian economy even weaker. Foreign investors already are increasingly staying away. Even before our actions today, nearly one-hundred billion dollars in capital was expected to flee Russia. Russia's energy, financial, and defense sectors are feeling the pain. Projections for Russian economic growth are down to near zero. The major sanctions we're announcing today will continue to ratchet up the pressure on Russia, including the cronies and companies that are supporting Russia's illegal actions in Ukraine.

In other words, today, Russia is once again isolating itself from the international community, setting back decades of genuine progress. And it doesn't have to come to this. It didn't have to come to this. It does not have to be this way. This is a choice that Russia, and President Putin in particular, has made. There continues to be a better choice: the choice of deescalation, the choice of joining the world in a diplomatic solution to this situation, a choice in which Russia recognizes that it can be a good neighbor and trading partner with Ukraine even as Ukraine is also developing ties with Europe and other parts of the world.

I'm going to continue to engage President Putin, as well as President Porochenko, and our European partners, in pursuit of such a diplomatic solution. But it is important for Russia to understand that meanwhile we will continue to support the people of Ukraine, who have elected a new President, who have deepened their ties with Europe and the United States; and that the path for a peaceful resolution to this crisis involves recognizing the sovereignty, the territorial integrity, and the independence of the Ukrainian people.