President Joe Biden on Tuesday announced biting U.S. sanctions on Moscow in the wake of Russian President Vladimir Putin’s decision to send troops into two regions in eastern Ukraine, which Biden denounced as a “flagrant violation of international law.”

RELATED: Ukraine-Russia tensions: Why concerns of a Russian invasion are high https://youtu.be/MwgHSzz7StQ

Biden said the first wave of U.S. penalties includes “full blocking sanctions” on two major Russian financial institutions, as well as on the country’s sovereign debt.

“That means we’ve cut off Russia’s government from Western financing,” he said. “It can no longer raise money from the West and cannot trade in its new debt on our markets or the European markets either.”

Biden warned that if Putin escalates his assault on Ukraine, “we stand prepared to go further” with sanctions as well.

The new steps will likely ripple across the American economy.

Some U.S. allies in Europe have raised concerns about various steps, warning that Putin could retaliate by cutting off oil and gas supplies that are vital to their countries.

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