Germany blocks opening of pipeline as West responds to Russian moves in Ukraine

Germany froze a new gas pipeline and Britain hit Russian banks with sanctions on Tuesday, as the West responded to Moscow's recognition of two separatist regions in Ukraine and a speech by President Vladimir Putin suggesting more belligerent aims.

Russia's parliament approved treaties with the two breakaway regions in Ukraine's east, a day after Putin announced he was recognising the independence of enclaves controlled by Russian-backed fighters since 2014.

The prospect of a disruption to energy supplies and fears of war, stoked by reports of shelling and movements of unmarked tanks in the city of Donetsk, rattled international markets and sent oil prices surging to their highest level since 2014.

Germany is Russia's biggest customer for natural gas, and the decision by Chancellor Olaf Scholz to halt the Nord Stream 2 pipeline -- built but still not opened -- was widely seen as one of the strongest measures Europe could take.

Scholz said he had asked the economy ministry to take steps to ensure that certification could not take place for now.