Vladimir Putin has mocked Western sanctions against his supporters, saying he plans to open a bank account in the banned bank Rossiya.
He was reported by Russian news agency Interfax as joking that he should steer clear of his allies who have been put on a list of people facing sanctions as they are "compromising us."
Despite his comments, he indicated Russia planned no more sanctions against the West in retaliation.
It comes as EU leaders signed a resurrected trade deal with Ukraine that was the catalyst for months of deadly protests in the country at a summit in Brussels.
Earlier the EU extended travel bans and asset freezes to 12 more people, in addition to a raft of restrictions already in place against those close to the Russian presidency and Russian bank Rossiya.
Leaders also agreed to cancel a G8 summit meeting with Russia that was planned to take place in Sochi in June.
Ukrainian Prime Minister Arseny Yatseniuk and leaders of the EU and its 28 nations signed the core chapters of the Ukraine-EU Association Agreement on the sidelines of the summit.
The deal commits Ukraine and the EU to closer political and economic cooperation.
Very happy we have now sealed strong political partnership with #Ukraine. pic.twitter.com/Pku9LpER4M
— José Manuel Barroso (@BarrosoEU) March 21, 2014
More substantial parts of the agreement, which is expected to remove restrictions on the movement of goods and services, are likely to be signed after Ukraine has held new presidential elections in May.
The signing comes four months after the now deposed Ukrainian President Viktor Yanukovych walked away from the agreement in favour of closer ties with Moscow.
While the Russian President has today signed the laws which complete the absorption of Crimea into Russia.
The Ukrainian Prime Minister Arseny Yatseniuk says it is not a decision he recognises.
On Thursday, US President Barack Obama announced sanctions against 20 individuals linked to the Russian government, including Yuri Kovalchuk, the man considered to be Mr. Putin's private banker.
Moscow immediately banned nine US officials and politicians from entering Russia in retaliation.
The EU said that 12 more members of the Russian government will be hit with travel bans and asset freezes, adding to the 21 it has already announced.
The announcement saw shares on the Moscow stock exchange - the Micex - drop by 3%. Rating agencies have also changed their economic outlook for the country to negative.
Russian Foreign Minister Sergei Lavrov denounced the signing of the Association Agreement saying that it was "dictated by the EU's wish to score in a geopolitical game rather than in the interests of Ukraine".
The country's Prime Minister Dmitry Medvedev also signalled that Russia was refusing to back down by saying that Ukraine should pay back US$11 billion it owes over a gas agreement, which he said should now be scrapped.
The agreement allowed Ukraine a discount of 10% on its gas imports in exchange for hosting Russia's naval ports in Crimea. Russia's annexation of Crimea effectively invalidated the agreement, Mr. Medvedev said.
Crimea voted last week to break away from Ukraine, but Western nations condemned the poll as illegal.
Amid the heightened tensions, France said on Friday that it would send four fighter jets to the Baltic states and Poland to boost NATO air patrols over the region.
