In a statement, Prime Minister Stephen Harper says Russian President Vladimir Putin's failure to cease backing armed rebels in eastern Ukraine constitutes a genuine threat to international peace and security.
Last week, Canada announced strengthened sanctions on arms manufacturers and energy and financial entities with significant links to the Russian government.
The statement says the new sanctions would be applied against the Russian government and those closest to it.
The bid to step up political pressure on Moscow will be co-ordinated with partners in the United States and Europe.
Harper says Canada is ready to impose further sanctions if the Putin administration's military aggression continues.
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