America will economically isolate breakaway regions in Ukraine because the world’s largest country acknowledges their right to self-govern.

The White House confirmed Joe Biden will sanction two parts of eastern Ukraine from any U.S. investment, trade and financial activity.

“President Biden will soon issue an executive order that will prohibit new investment, trade, and financing by U.S. persons to, from, or in the so-called DNR and LNR regions of Ukraine,” Press Secretary Jen Psaki said in a statement.

The decision came after Russian President Vladimir Putin officially recognized the two regions’s independence from the Borderland Country. The order also extends to individuals who work in the disputed territories.

“This executive order will also provide authority to impose sanctions on any person determined to operate in those areas of Ukraine,” Psaki said.

The order in question accuses Putin of violating international law, commitments and Ukraine’s “sovereignty and territorial integrity.”

“This was not a speech just about Russia’s security, it was an attack on the very idea of a sovereign and independent Ukraine,” a senior administration official said in a statement.

“[Putin] made a number of false claims about Ukraine’s intentions that seemed designed to excuse possible military action. This was a speech to the Russian people to justify a war–in fact, he once again explicitly threatened one,” the official added.

The Biden administration stressed it will impose more “severe” sanctions, if Russian soldiers unlawfully enter Ukrainian territory.

“These measures respond to Russia’s recognition gambit; they are not the swift and severe economic measures we have been preparing, in coordination with allies and partners, should Russia further invade Ukraine,” the official said.

The White House is still holding talks with Ukraine, allies and partners on the Russia-Ukraine border tension.

“We are pleased with the historic coordination we have had with our allies and partners on developing these measures, and will continue to stay closely coordinated in the days ahead,” the official said.

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