The Russian embassy in Australia has labelled the federal government's newest sanctions as "xenophobic", while Prime Minister Scott Morrison concedes he does not think the penalties will sway Vladimir Putin from invading Ukraine.
The government unveiled its first set of sanctions yesterday before calling in Russian ambassador Alexey Pavlovsky to the Department of Foreign Affairs and Trade.
The Russian embassy criticised Mr Morrison's claim that the penalties indicated Australia would stand up to "bullies and thugs".
The embassy accused Ukraine of bullying the people living in the breakaway regions of Donetsk and Luhansk and alleged there was an "imminent threat of ethnic cleansing" by Ukrainian authorities.
"In alignment with its key partners, Canberra has played its part in supporting and encouraging the xenophobic bullies based in Kyiv," it said.
"Recognising the Donetsk and Luhansk people's republics was the only solution Russia felt compelled to take.
"This decision by Russia will not be reverted."
This morning, Mr Morrison said he completely rejected the statement from the embassy, and doubled down on the need for the sanctions to send a message to the Russian government.
But, he acknowledged, it was unlikely the penalties would lead to any change of behaviour from the Russian leader.
"Now, I note that many have said, 'Do you think that this will lead to Russia pulling back?' I would hope so, but I don't expect so," Mr Morrison said.
"The reason we're doing this is there must be a price for the unprovoked, unlawful, unwarranted, unjustified attacks and threats and intimidation that has been imposed by Russia on Ukraine."
Meanwhile, the government has made clear the sanctions announced against banks and individuals in the two breakaway regions were the first "tranche", and if Russia does not de-escalate then more will follow.
"We've got plenty left in the tank when it comes to further actions we would take if and when the violence is escalated by Russia," Mr Morrison said.
He said the sanctions would become law tomorrow and take effect from the end of March to give potentially affected businesses time to change their arrangements.
Opposition Leader Anthony Albanese said he agreed that Australia should move in "lock step" with our allies, but took a swipe at the Prime Minister's recent criticism of Labor's national security stance.
"One of the things that I do when it comes to national security issues like this, is I don't look for false distinctions between the government and the opposition. It's in Australia's national interest for us to have a common position," he said.
Peacekeeping claim 'obscene perversion'
Foreign Minister Marise Payne, who is in Europe at the moment, unleashed on the Russian President's claim that the troops sent into the regions in eastern Ukraine were "peacekeepers".
"Any suggestions that there is a legitimate basis for Russia's actions are pure propaganda and disinformation," Senator Payne said.
"The assertion by President Putin of Russian soldiers acting as peacekeepers is indeed an obscene perversion of the noble and vital role that generations of peacekeepers have played across the world."
Mr Morrison echoed Senator Payne in condemning the notion that the troops were there to maintain peace.
"They're not peacekeepers, they're invaders," he said.
"That's how we see [it] and we'll call it out. If they don't like it, that's tough."
Ukraine has now declared a nationwide state of emergency amid fears of a full-scale invasion.
Russia has also started evacuating its diplomatic staff from missions in Ukraine.
