David Cameron was yesterday pushing for tougher sanctions to strike at the heart of Russia’s economy over its incursion into Ukraine – even if they risk hurting the City. Downing Street admitted that targeting lending to sectors such as oil could have an impact on London’s financial heart. But the Prime Minister’s spokesman said it was right to put pressure on President Vladimir Putin over his military aggression. Scroll down for videos Russian President Vladimir Putin was in Mongolia today, but is facing increasing isolation in Europe over Moscow's military intervention in Ukraine All at sea: The Vladivostok aircraft carrier, which was being built in France, has now been axed after continued fighting in Ukraine
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Brussels has announced proposals to step up sanctions against Moscow
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A new embargo on arms sales to Russia is also set to be introduced
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EU has pledged to pass new sanctions by Friday unless Putin pulls back
The development came as @placeholder finally bowed to pressure and cancelled the delivery of the first of two warships to Russia.