US sanctions target key Russia economic sectors

WASHINGTON (AP) — The Obama administration is sanctioning Russia's largest bank as part of a new round of financial penalties aimed at punishing Moscow for its support of separatists in Ukraine.

The U.S. is also expanding sanctions targeting Russia's energy and defense sectors. The U.S. penalties come hours after the European Union enacted its own sanctions on Russian banks, arms makers and the country's biggest oil company.

Friday's penalties prohibit persons in the U.S. from providing equity or debt financing of longer than 30 days to Sberbank of Russia. The bank is Russia's largest financial institution and accounts for approximately one-quarter of Russian banking assets and one-third of its banking capital, according to the Obama administration.

The West is moving forward on sanctions despite a fragile cease-fire between Ukraine and the pro-Russian separatists.