U.S. President Barack Obama and major industrialized allies warned Russia on Monday it faced damaging economic sanctions if President Vladimir Putin takes further action to destabilize Ukraine following the seizure of Crimea.

Leaders of the Group of Seven nations, meeting without Russia, agreed to hold their own summit this year instead of attending a planned G8 meeting in the Russian Olympic venue of Sochi, along the Black Sea coast from Crimea, and to suspend their participation in the G8 until Russia changes course.

(Reuters)