Comes despite a planned meeting between Biden and Putin.
Ms Psaki said that the White House had anticipated such a move and that Mr Biden will sign an executive order to prohibit new investment, trade and financing by Americans to, from and in the so-called Donetsk People’s Republic and Luhansk People’s Republic.
“This E.O. will also provide authority to impose sanctions on any person determined to operate in those areas of Ukraine,” Ms Psaki said. She added that the Treasury and State Departments will have additional details and additional measures will be announced.
“To be clear: these measures are separate from and would be in addition to the swift and severe economic measures we have been preparing in coordination with Allies and partners should Russia further invade Ukraine,” she said.
The news came despite the fact that Mr Biden and Mr Putin had agreed to have a meeting on the condition that Russia would not invade Ukraine. French President Emanuel Macron had brokered the agreement.
Ukrainian President Volodymyr Zelenskyy said Monday that he had spoken with Mr Biden and that he also planned to speak with British Prime Minister Boris Johnson.
Mr Johnson condemned the move as “a flagrant violation of the sovereignty and integrity of Ukraine.”
But Mr Putin called Eastern Ukraine “ancient Russian lands” that was “managed by foreign powers.” The Russian president that “the responsibility for the possible continuation of the bloodbath will be on the conscience of the regime that is ruling in Kiev.”
Russia has amassed thousands of troops as well as military equipment on Ukraine’s border.
In a similar vein, US members of Congress and Senators condemned Mr Putin’s actions. Sen Lindsey Graham called for swift actions.
“Putin’s decision to declare eastern Donetsk and Luhansk as independent regions within Ukraine is both a violation of the Minsk Agreements and a declaration of war against the people of Ukraine,” he tweeted. “His decision should immediately be met with forceful sanctions to destroy the ruble and crush the Russian oil and gas sector.”