Foreign Secretary Liz Truss has announced more sanctions against Russia as she told the House of Commons that Vladimir Putin's invasion is "not proceeding to plan".
She said: "He expected to take cities quickly. He expected Ukraine to retreat and he expected the West to be divided. Instead, his forces were met by the heroic heroism of President Zelensky and the resolute determination of the Ukrainian people.
"He has been met by a united West, together with our friends around the world, and we have taken decisive action. Today we have acted with the US, the EU, Japan and Canada to cut Russia's central bank off from our markets. The rouble has fallen by over 40 per cent as a result, as much as 250 billion dollars have been wiped off the Russian stock market and today their stock market is closed."
Telling the Commons she is "determined to go much, much further" with actions against Russia, Foreign Secretary Liz Truss said she would sanction the country's largest bank with a new law.
Ms Truss told MPs: "Today I can inform the House I will be laying two new pieces of sanctions legalisation. The first introduces a set of new powers against Russia's financial sector. It includes powers to prevent Russian banks from clearing payments in sterling.
"With over 50 per cent of Russian trade denominated in dollars or sterling, our co-ordinated action with the United States will damage Russia's ability to trade with the world. As soon as this legislation comes into force, we will apply it to Sberbank, Russia's largest bank."
Ms Truss confirmed she would sanction a further three Russian banks in light of the invasion of Ukraine.
"I will also be imposing a full asset freeze on three further banks," Ms Truss told the Commons, naming "Russia's national development bank" among the newly-sanctioned institutions.
The UK and Western allies will have to undergo "some economic hardship as a result of our sanctions", she said.
The Foreign Secretary told the Commons: "The days ahead are likely to prove tougher still. The UK and our allies will have to undergo some economic hardship as a result of our sanctions. But our hardships are nothing compared to those endured by the people of Ukraine.
"Casualty numbers are rising and over 300,000 people have already been displaced. This is a struggle for Ukraine's freedom and self-determination, but it is also a struggle for freedom and democracy everywhere. And for a survival of a Europe whole and free."
Ms Truss said the new legislation will isolate Russian companies from access to UK capital markets and ban exports to Russia across a range of "critical sectors".
She said in the Commons that new legislation "will prevent the Russian state from raising debt here. And it will isolate all Russian companies - that's over three million businesses - from accessing UK capital markets".
She said a second piece of legislation "will ban exports to Russia across a range of critical sectors. This includes high-end technological equipment" including marine and navigation equipment which "will blunt Russia's military industrial capabilities and act as a drag on Russia's economy for years to come".
Ms Truss said: "I appreciate the consequences of this step for British people and British businesses operating in Russia."
She said the Government will offer "advice and guidance" to affected UK businesses and consular staff will continue to support British nationals in Russia and Ukraine.
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