Russia faces more sanctions as monitors held in Ukraine

Group of Seven leaders agreed to impose additional sanctions on Russia, blaming it for stoking the conflict in Ukraine as the Ukrainian government said rebels had taken international military monitors hostage.

Penalties will be unveiled early next week by the U.S. and the European Union, according to a European diplomat and an American official. The sanctions may target individuals with influence in sectors of the Russian economy, such as energy and banking, White House Deputy National Security Adviser Ben Rhodes told reporters traveling with U.S. President Barack Obama.

The leaders of the world’s largest industrial democracies announced their decision today as turmoil intensified in Ukraine and Russia renewed military exercises on its neighbor’s border. The move followed a conference call yesterday between Obama and the leaders of Germany, France, the U.K. and Italy.