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White House: Putin's Inner Circle 'Going to be Affected' By New Sanctions

Russia's President Vladimir Putin attends an awarding ceremony for Russian athletes, winners of the XI Paralympic Olympic games, in Sochi on March 17, 2014. Putin told yesterday US President Barack Obama the referendum on Crimea joining Russia was fully legal, but the two leaders also agreed to work together to find ways out of the Ukraine crisis, the Kremlin said. AFP PHOTO/ RIA-NOVOSTI/ POOL/ MIKHAIL KLIMENTYEV AFP/AFP/Getty Images

Story by the Associated Press; curated by Oliver Darcy.

WASHINGTON (AP) — The White House says new penalties expected this week against Russia for its action against Ukraine will affect the people closest to Russian President Vladimir Putin.

Deputy national security adviser Tony Blinken says sanctions already in place are projected to push the Russian economy into negative growth.

He tells CNN's "State of the Union" that those around Putin "are going to be affected" by additional penalties expected to be announced early this week.

Earlier Sunday, President Barack Obama said in Malaysia that the U.S. would be in a stronger position to deter Putin once Putin sees the world is unified in punishing Russia.

Obama said Russia wasn't abiding by a deal reached to ease tensions.

This story has been updated with video.

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