(Reuters) - The United States imposed sanctions on Russia's VEB Bank and Promsvyazbank on Tuesday, according to statement from the U.S. Treasury Department, after Moscow formally recognized two regions of eastern Ukraine as independent.

       "Today's actions, taken in coordination with our partners and allies, begin the process of dismantling the Kremlin's financial network and its ability to fund destabilizing activity in Ukraine and around the world," Treasury Secretary Janet Yellen said in the statement.

       (Reporting by Ismail Shakil in Bengaluru; Editing by Caitlin Webber in Washington)