Explainer: How Western sanctions might target Russia

After Russia recognised two breakaway regions in eastern Ukraine as independent entities, the US and its allies are coordinating new financial and economic sanctions on Moscow.

The United States and its allies are coordinating new financial and economic sanctions on Russia after Moscow recognised two breakaway regions in eastern Ukraine as independent entities, officials said.

President Vladimir Putin also signed a decree on the deployment of Russian troops to the breakaway regions. But White House officials said that because Russia already had troops in the regions, Moscow's moves did not trigger a broad package of sanctions which Washington and its allies have been working on in the event of a Russian invasion of Ukraine.

The White House announced separate, less severe and more targeted sanctions. European Union member states are also considering possible sanctions.

Russia has been under Western sanctions since its 2014 annexation of Crimea from Ukraine. More punitive measures were added after a former Russian spy was poisoned in Britain in 2018 - Russia denied any involvement - and following an investigation into allegations, denied by Moscow, of Russian meddling in the 2016 US presidential election won by Donald Trump. Follow Russia-Ukraine crisis LIVE updates

Here are some ways sanctions could target Russia:

Some smaller Russian state-owned banks are already under sanctions: Washington imposed curbs on Bank Rossiya in 2014 for its close ties to Kremlin officials.

According to sources, the Biden administration has prepared a sweeping measure to hurt the Russian economy which would cut the "correspondent" banking relationships between targeted Russian banks and US banks that enable international payments.