Putin pledged to protect a bank that is partially owned by a former ally who has been blacklisted by Washington. Russia's response to the latest financial and visa restrictions imposed by the United States involved creating its own blacklist. Despite Putin's allies downplaying the US sanctions, the Moscow stock exchange experienced a significant decline in shares, losing $70 billion in value in one month. President Obama warned of targeting key sectors of the economy if Russia extended its reach beyond the Black Sea peninsula in Ukraine. Russian troop movements near the Ukraine border were met with skepticism by Washington, leading the OSCE to send monitors to Ukraine. Visa and MasterCard ceased processing payments for a Russian bank owned by individuals on the US blacklist, prompting Russia to consider canceling foreign borrowing for the year and reducing domestic borrowing if debt issuance costs increased. The European Union, in alignment with the US, imposed sanctions on 12 individuals, including a Russian deputy prime minister and two aides to Putin. European leaders also expressed a desire to lessen dependence on Russian energy and signed a political agreement with the new leadership in Kiev following the ousting of Moscow-backed President Viktor Yanukovich. In a televised ceremony from the Kremlin, Putin ratified a treaty annexing Crimea into Russia and established two new administrative districts in the region. Russians in Crimea celebrated the annexation with fireworks, while Ukrainian and Tatar residents remained behind closed doors. Amid the annexation, a Ukrainian businessman expressed disappointment over the presence of an occupying force in his country. A referendum held last Sunday in Crimea, following the annexation by Russian troops, overwhelmingly voted in favor of union with Russia. This move was criticized by Washington and the European Union as a fraudulent process. In response, President Obama decided to target the finances of individuals connected to Putin, escalating the diplomatic tensions. Putin denied any involvement of Bank Rossiya, a St Petersburg-based bank chaired by his associate Yuri Kovalchuk, in the events in Crimea. He stated that the bank mainly serves clients in Russia's energy sector. Putin also announced that he would transfer his wages to Bank Rossiya. Other individuals on the U.S. blacklist include oil and commodities trader Gennady Timchenko, the Rotenberg brothers, and various high-ranking Russian officials. Additionally, European leaders discussed the need for more secure energy supplies, as Russia currently provides a significant portion of the EU's oil and gas. The EU aims to reduce its energy dependency and negotiate supply deals collectively with Moscow to strengthen their bargaining power. Van Rompuy stated the importance of moving towards an energy union. Angela Merkel suggested that US shale gas could be an option for European countries looking to diversify. Obama is set to discuss this issue with EU leaders at an upcoming summit. US credit card companies Visa and MasterCard stopped providing services for payment transactions with Russia's SMP bank, causing concern among foreign banks and companies about potential ripple effects of sanctions. French banker in Moscow expressed skepticism about the effectiveness of current sanctions, highlighting the risk to US dollar transfers for the Russian economy. Obama mentioned the possibility of imposing sanctions on various economic sectors if Russia escalates military actions in Ukraine. Ukrainian troops in Crimea continued to withdraw from bases surrounded by Russian forces. German Foreign Minister Frank-Walter Steinmeier stated that the situation in Ukraine is still volatile and dangerous, and encouraged OSCE observers to begin their work promptly. European nations, including Germany and France, took individual measures against Russia, with Germany suspending defense-related exports and France ending military cooperation. The EU leaders in Brussels showed their support for Ukraine's new leadership by signing a political agreement with interim Prime Minister Arseniy Yatseniuk and promising financial aid once a deal is reached with the IMF. Russia's stock index fell initially due to concerns about sanctions, with credit ratings agencies Fitch and S&P changing their outlooks on Russia to negative. Prime Minister Dmitry Medvedev indicated that Russia would increase financial pressure on Ukraine to repay a gas supply contract.