Reuters reports the European Union has published a law that will curb arms sales to Russia and to cut off financing for five major Russian banks over Moscow's support for rebels in Ukraine. Russia has denounced the measures, agreed by the 28 EU member states on Tuesday, as "destructive and short-sighted", while fighting has intensified in eastern Ukraine between Kiev forces and the pro-Russian separatists. EU officials say the sanctions aim to inflict maximum pain on Russia and minimum pain on the EU. "We will for sure have an effect and a very substantial and concrete effect on Russia," one EU official said, speaking on condition of anonymity. The toughest measures aim to prevent Russian banks from raising money on Western capital markets, while others limit defence sales and the export of hi-tech equipment for the oil sector. Published on Thursday in the Official Journal of the European Union, the law takes effect from Friday, Aug. 1.