EU imposes sanctions on Russia's financial system and oil industry

The European Union has imposed sanctions on Russia's financial system and oil industry. The decision was made by permanent envoys of the EU member states in Brussels on Tuesday, the European Commission and the European Council say in a joint statement.

Russian state-owned banks will now be prohibited from operating on Europe's financial markets, while European companies will no longer have a chance to deliver machinery used for producing and transporting oil as well as arms.

The sanctions are not going to be lifted unless Russia changes its policy towards Ukraine and takes active steps to resolve the crisis.