What to know about economic sanctions and how they will affect Russia

President Biden imposed sanctions on Russia in response to its actions against Ukraine.

In response to Russian President Vladimir Putin's decision to recognize the separatist-controlled Donetsk and Luhansk regions in Ukraine as "independent" states, President Joe Biden announced sanctions against Russia in an effort to deter it from launching a full-scale invasion into Ukraine.

Biden on Tuesday called Putin's decision "the beginning of a Russian invasion of Ukraine" and warned that the sanctions could grow more severe.

"As Russia contemplates its next move, we have our next move prepared as well," Biden said. "Russia will pay an even steeper price if it continues its aggression, including additional sanctions."

Russia’s foreign minister Sergey Lavrov told Russian state TV that Russia was already "used to" sanctions and that it believes more sanctions would be imposed on Moscow regardless of what it does.