EU leaders to meet President Obama to discuss further action against Russia over Ukraine

President Vladimir Putin has condemned current sanctions as illegal

David Cameron inspects the Federation Guard in Canberra (Mark Graham/Getty Images)

European leaders will meet President Barack Obama tomorrow at the G20 Summit in Brisbane to discuss further action against Russia over its intervention in Ukraine.

The US and European Union have imposed financial sanctions on Russia as the crisis has escalated. President Vladimir Putin has condemned these sanctions as illegal, with the vast country expecting no economic growth next year as a result.

However, European Council President von Rompuy said that Russia must "top the inflow of troops and withdraw those already present" in Ukraine if sanctions are to be lifted.

Following the President Obama meeting, EU finance ministers will gather on Monday to decide whether the G20 made any progress on forcing Russia to abide by the Minsk agreement, signed in September, to ensure Ukraine's independence. This included Russia not sending any more weapons over the border.

If not, they will then agree on even tougher sanctions as they seek a political rather than military end to the crisis. "We will continue to use all diplomatic tools, including sanctions, that are at our disposal - Russia still has the choice to... choose the path of de-escalation," Mr von Rompuy said.

President Putin has claimed he is prepared for a "catastrophic" oil price collapse in the face of tougher penalties.