The President asserted that a hastily scheduled referendum on Crimea seceding and becoming part of Russia would violate international law.
European leaders announced their own measures but split over how forcefully to follow America's lead. Obama threatened further steps if Russia persists.
After announcing his sanctions at midday, Obama emphasized his resolve in a personal telephone call with Russian President Vladimir Putin later Thursday, the White House said.
In a one-hour discussion, Obama affirmed his contention that Russia's actions violate Ukraine's sovereignty.
The President told Putin there was still a way to resolve the dispute diplomatically, the White House said,with Russian forces moving back to their base in Crimea, the governments of Ukraine and Russia holding direct talks and international monitors arriving.
The U.S. is also calling on Russia to recognize the legitimacy of Ukrainian plans for elections in May, not the Crimean referendum a week from Sunday.In all, signs still pointed to a continuing diplomatic battle over Ukraine and what could prove a broader fault line in Europe's post-Cold War order.
While East and West no longer threaten nuclear war and have vastly expanded commercial ties, Russia is determined to dominate the future of the former Soviet republics along its borders.
Washington, its NATO partners and others across the continent are striving to pull these nations out of Moscow's orbit.
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