Pro-Russian rebels free observer but hold seven more

Pro-Russian rebels paraded European monitors they are holding in eastern Ukraine yesterday, freeing one but saying they had no plans to release another seven as the US and Europe prepared new sanctions against Moscow.

President Barack Obama called for the US and Europe to join forces to impose stronger measures to restrain Moscow. The White House said it will add names of people close to President Vladimir Putin and firms they control to a list of Russians hit by sanctions over Ukraine, and impose restrictions on hi-tech exports.

The EU is expected to follow suit by adding to its own list of targeted Russian people and firms, but Washington and Brussels have yet to reach agreement on wider measures designed to hurt the Russian economy more broadly.