May 2, 2014 1:02 p.m. ET
The WSJ reports,"If Russia continues on its current course, we have a range of tools at our disposal, including sanctions that would target certain sectors of the Russian economy," Mr. Obama said during a news conference at the White House. "And we've been consulting closely with our European and G-7 partners, and we're stepping up our planning."
"Ms. Merkel said if further destabilization should happen, Europe will move to so-called Stage 3 sanctions".
"What we're talking about are sectoral measures," she said. She said part of that effort is a diversification of Europe's energy supply in the short, as well as long, term.
Targeting oil and gas sectors next might be unrealistic, given opposition from within the EU, but there are other key sectors that could be hit, Mr. Obama said.
"We're confident that we will have a package that will further impact Russia's growth and economy," Mr. Obama said. "Our hope is that we don't have to deploy them."
