Sky NEWS 10:48am UK, Monday 03 March 2014
Moscow claims the superpowers' views "coincide" as Hague calls the unrest the biggest crisis in Europe in the 21st century.
Russia has said China is largely "in agreement" over the situation in Ukraine after the other G8 nations condemned its intrusion into the country.
Russian Foreign Minister Sergei Lavrov discussed Ukraine by telephone with his Chinese counterpart, Wang Yi, on Monday, and claimed they had "broadly coinciding points of view" on the situation there, according to a ministry statement.
Speaking at the UN Human Rights Council in Geneva, he said Russian troops were necessary in Ukraine "until the normalisation of the political situation".
He added: "We call for a responsible approach, to put aside geopolitical calculations, and above all to put the interests of the Ukrainian people first."
As a tense stand-off continues between Russian and Ukrainian forces on the borders of Crimea, the other seven nations of the G8 urged Moscow to hold talks with Kiev.
"We, the leaders of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States and the President of the European Council and President of the European Commission, join together today to condemn the Russian Federation's clear violation of the sovereignty and territorial integrity of Ukraine," they said in a statement.
"We have decided for the time being to suspend our participation in activities associated with the preparation of the scheduled G8 Summit in Sochi in June."
British Foreign Secretary William Hague, who is in Kiev for talks on the crisis, said Russia has taken operational control of Crimea and described its intervention in Ukraine as the biggest crisis in Europe in the 21st century.
At a news conference with Ukraine Prime Minister Arseny Yatseniuk, he said: "If this situation cannot resolve itself, if Russia cannot be persuaded to respect the sovereignty and territorial integrity of Ukraine, there will have to be other consequences and other costs.
"Russia should be in no doubt about this, this is something we take very seriously, that we have to take very seriously, because if this becomes the normal way of behaving in the world, of intruding or violating the sovereignty of neighbours, well then clearly that would be an even bigger crisis in international affairs."
Prime Minister David Cameron also tweeted he will chair a meeting of the National Security Council on the "British and international response to the grave situation in Ukraine".
Moscow's Stock Exchange dropped around 10% in the first hour of trading, and Russia's central bank responded by hiking its main interest rate in an emergency move to limit economic damage.
The Bank Rossii raised its rate to 7% from 5.5% as the ruble hit an historic low against the dollar and the euro.
On Monday, it was trading at 51.20 rubles to the euro, with one dollar also worth around 37 rubles - the lowest ever value for the Russian currency beating even the financial crisis of 2008/9.
Hundreds of suspected Russian troops have surrounded a Ukrainian military base near Crimea's capital Simferopol, preventing soldiers from going in or out.
The convoy blockading the site includes at least 17 military vehicles, which have Russian number plates.
Troops are also reported to have taken control of a ferry terminal in the city of Kerch, around 12 miles (19km) by boat from Russia on the eastern tip of the Crimea region.
Ukrainian Prime Minister Arseny Yatseniuk indicated his country was mobilising for war following the move, saying in English: "This is not a threat: this is actually the declaration of war to my country."
Mr Yatseniuk heads a pro-Western government that took power in the former Soviet republic when its Moscow-backed president, Viktor Yanukovych, was ousted last week.
Mr Cameron and US President Barack Obama spoke on Sunday evening and agreed Russia's actions were "completely unacceptable" - and that it would face "significant costs" if it did not change course on Ukraine.
The US announced Secretary of State John Kerry would visit Kiev on Tuesday to show "strong support for Ukrainian sovereignty".
Meanwhile, Ukraine launched a treason case against its new navy chief after he switched allegiance to the pro-Russian Crimea region.
Rear Admiral Denis Berezovsky was appointed head of Ukraine's navy on Saturday and the Kiev government was still claiming its Black Sea fleet remained loyal on Sunday afternoon.
Appearing before cameras in Sevastopol alongside Sergiy Aksyonov, the pro-Russian prime minister of Crimea's regional parliament, he said he had ordered Ukrainian naval forces there to disregard orders from "self-proclaimed" authorities in Kiev.
Despite the strong language employed by the US, a series of public statements and private conversations with reporters made it abundantly clear that Washington wanted to get Russian President Vladimir Putin to pull back without any armed confrontation.
"Right now, I think we are focused on political, diplomatic and economic options," a senior US official told reporters.
"Frankly our goal is to uphold the territorial integrity and sovereignty of Ukraine, not to have a military escalation."
Mr Kerry had previously accused Russia of an "incredible act of aggression", saying: "You just don't in the 21st century behave in 19th century fashion by invading another country on a completely trumped-up pretext."
It came after Mr Putin secured permission from his parliament on Saturday to use military force to protect Russian citizens in Ukraine and told Mr Obama he had the right to defend Russian interests and nationals, spurning Western pleas not to intervene.
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