President Obama added more sanctions against Russia Wednesday. He targeted large banks and energy and defense firms.

Officials described the increased sanctions against Russia as the most punishing reaction to date for Russia's intervention in Ukraine.

The U.S. has threatened to cut off entire sectors of the Russian economy in the past, but never acted. These new sanctions don't go that far, but they do significantly impose travel and financial restrictions on many individuals and businesses.

European leaders decided not to increase their sanctions as much as the U.S. did. They met Wednesday to discuss a penalties packages against Russia in Brussels. They decided to block European-backed loans for new projects in Russia.

Although the Europeans aren't going as far as the Americans in response to Russia, they are showing that they agree that Russia should be punished for their actions in the Ukraine. The actions coordinated by the U.S. and Europeans was made possible by a phone call between Obama and German Chancellor Angela Merkel. Merkel has been a crucial part of the European response to Russia.

"We have said for quite some time that Russia's failure to take some of the steps that would de-escalate the conflict in Ukraine put them at risk of facing greater isolation and greater economic consequences," Josh Earnest, the White House press secretary, told reporters at a briefing hours before the new sanctions were to be announced. 

The actions the U.S. decided to choose show that U.S. intelligence understands that Russia has not stopped arming and sending pro-Russian separatists across the border into Ukraine.

The sanctions will prevent many Russian companies from American loans over 90 days long. They'll be able to conduct day to day business operations, but longer term business and loans will be made difficult.

Europe has more aligned themselves closer to Russia and wouldn't go as far as the U.S. in their sanctions. Much of Europe depends on Russia for energy.