We just finished our long working-dinner on the Ukraine crisis. Since we met two weeks  ago, events have continued to unfold. Russia's annexation of Crimea and Sevastopol is a clear violation of Ukrainian sovereignty and of international law. We strongly  condemn the  unconstitutional referendum in Crimea; we will not recognise it, nor will we re cognise the  annexation. There is no place for the use of force and coercion to change borders on the  European continent in the 21st century.  

In the absence of de-escalation from Russia, the European Council has decided to expand the list of individuals subject to visa ban and asset freeze. We put forward another 12  names to the list of 21 agreed to earlier this week. We are also cancelling the next  EU-Russia Summit and member states will likewise cancel regular bi lateral summits.

We make clear that failure to settle the crisis peacefully, and any st eps by Russia to  destabilise Ukraine, will have far-reaching consequences. And by that we mean  consequences on relations in a broad range of economic areas. We ask the Commis sion  and the member states to prepare possible targeted measures. We ar e seeing that the  shadow of sanctions is already having an effect on Russia's investment climate.

Remarks_by_President_Herman_Van_Rompuy_following_the_first_session_of_the_European_Council.pdf