Australia has formally signed off on a range of sanctions against Russia as the United Nations Security Council convenes for an emergency meeting at Ukraine's request.
Council diplomats are finalising a draft resolution condemning Russia for violating international law and a 2015 agreement aimed at restoring peace in eastern Ukraine.
It comes after Russian President Vladimir Putin recognised the independence of two Moscow-backed rebel regions and ordered the deployment of Russian forces as "peacekeepers".
Ukraine has declared a state of emergency as shelling intensified in eastern Ukraine and there are reports of convoys of military equipment moving through the region from the Russian border.
Prime Minister Scott Morrison met with Governor-General David Hurley on Thursday to approve the first tranche of sanctions against Russia.
The sanctions, aimed at Russian banks and individuals of strategic and economic importance, will become law from Friday and come into effect at the end of March.
Mr Morrison said the sanctions would send a message about the cost of Russia's aggression.
But he admitted he did not expect the sanctions would lead to Russia withdrawing troops.
"There must be a price for the unprovoked, unlawful, unwarranted and unjustified attacks. This cannot be a consequence-free action by Vladimir Putin and the Russian regime," he said.
Additional sanctions and a larger list of individuals remains on the cards, with Australia preparing to move in lockstep with the United Kingdom and United States against Russia.
Eight members of Russia's security council are covered in the first tranche of Australia's sanctions, including travel bans and finance freezes.
"We have plenty left in the tank when it comes to further actions we would take if and when the violence is escalated by Russia," Mr Morrison said.
"The most potent form of those sanctions are the targeted ones to the individuals. Our list is longer than the eight (members) and we will be working closely to develop the case that will enable us to take further actions against others."
Australia's financial intelligence agency AUSTRAC is monitoring suspicious transactions as it continues to regulate potential breaches of Australian and foreign sanctions.
It regulates more than 16,000 financial sector businesses.
Defence Minister Peter Dutton said stronger action from China could deter Russia from going into Ukraine but it has so far refused to act.
"The Chinese government has the ability, the relationship, to stop president Putin in his tracks," he told 2GB.
"But of course, they've done the complete opposite. They've provided words of encouragement."
Opposition Leader Anthony Albanese says a unified, global approach is essential.
"What we need to do is make sure we're united in putting forward our view that Russia's behaviour is contrary to international law," he said.
"Australia acting by ourselves isn't going to have an impact, what we need to do to maximise that impact is to be in lockstep with allies and democratic nations."
Russia's ambassador hit back at the sanctions, accusing Australia of being indifferent to discrimination faced by Russian speakers.
In a statement, the embassy said the decision to recognise the Donetsk and Luhansk regions on humanitarian grounds to "protect" civilians, including hundreds of thousands of Russian nationals.
But Mr Morrison said any suggestion from Russian ambassador Alexey Pavlovsky that Russian troops in Ukraine were peacekeepers was "offensive" to legitimate peacekeeping forces.
"They're not peacekeepers, they're invaders. That's how we see it and we'll call it out. If they don't like it, that's tough."
Despite fears the Australian sanctions on Russia would lead to cyber security attacks, Mr Morrison said the government was not aware of any immediate threats to Australian organisations.
However, an enhanced cyber security position will be adopted and the monitoring of such threats would be increased.
More than 180 Australian citizens in Ukraine have requested assistance to leave the country and an estimated 1400 Australians remain there.
with reporting from Reuters
© AAP 2022