Natural gas prices in Europe started to increase on Tuesday after Russia decided to recognize the Donetsk and Luhansk regions as independent states.

Natural gas prices for March futures contracts, traded on the TTF - the Netherlands-based virtual natural gas trading point, started the day at €87, posting a 21% increase compared to the previous trading session.

Natural gas was trading at €80.5 at 1147 GMT on Tuesday after closing the previous session at €72.

Europe imports approximately 40% of its natural gas needs from Russia, equivalent to 175 billion cubic meters.

International benchmark Brent similarly increased amid the deepening Russia-Ukraine crisis after Moscow recognized Ukraine's breakaway regions of Donetsk and Luhansk.

Brent crude reached as high as $96.44 a barrel on Monday’s trade. Trade on Tuesday at 1147 GMT hit $94.78 per barrel for a 1.92% gain after closing at $92.99 a barrel during the previous session.

Late Monday, Russian President Vladimir Putin signed a decree recognizing the pro-Russian separatist regions in eastern Ukraine.

Hours after his controversial decision, Putin ordered Russian troops to move to eastern Ukraine for the alleged purpose of peacekeeping.

The EU, meanwhile, agreed to update the already-existing sanctions lists, including applying asset freezes and travel bans on 193 people.

The bloc also prohibited financial services to a further 48 entities over the illegal annexation of Crimea and the city of Sevastopol.

The EU has been applying restrictive measures in response to the Ukrainian crisis since 2014.

Similarly, US President Joe Biden signed an executive order barring new investment, trade and financing to, from, or in Ukraine's breakaway Donetsk and Luhansk regions.

€1 equals 15.67 Turkish liras at 11.56 GMT./aa