On July 29, 2014, the U.S. Treasury Department, acting under the authority granted by President Obama's Executive Order 13662
, materially escalated sanctions against Russia, imposing a broad-based package of restrictions on Russian entities in the financial services sector. Additionally, the President authorized the blockage of exports of specific goods and technologies that would benefit Russia's energy sector, and increased sanctions on Russian defense companies. The U.S. also suspended the use of credit that encourages exports to Russia, as well as financing for development projects in the country. These new penalties against Russia follow tougher sanctions agreed to by European Union leaders earlier on Tuesday, July 29, 2014.