Russia’s parliament approved treaties with two breakaway regions in eastern Ukraine on Tuesday, opening the way for an immediate Russian troop deployment despite the threat of Western sanctions including the blocking of a major new pipeline, Associated Press reported.

The lower house’s approval of President Vladimir Putin’s decision to recognise the two regions’ independence increased Western fears of war that have rattled global financial markets, hit Russia’s rouble and pushed oil prices to a seven-year high.

Ukrainian President Volodymr Zelenskiy said his country may sever diplomatic ties with Russia, and the United States and the European Union discussed new sanctions as Ukraine reported continued shelling in east Ukraine.

German Chancellor Olaf Scholz put the certification of the Nord Stream 2 gas pipeline from Russia to Germany on ice, a measure widely considered the toughest Europe is likely to take against Moscow at this stage.

“We must reassess the situation, in particular regarding Nord Stream 2,” Scholz told a news conference with the Irish leader in Berlin. The pipe, built to bring gas from Russia to Germany via the Baltic Sea, has been completed but has yet to win regulatory approval.

Tensions over a Russian troop build-up near Ukraine’s borders have risen sharply since Putin announced on Monday that he was recognising the independence of the Luhansk and Donetsk regions controlled since 2014 by pro-Russian separatists.

He also signed a decree on the deployment of Russian troops to “keep peace” there.