The United States has put all military engagements with Russia on hold over Moscow's deployment of troops in Ukraine.
Pentagon spokesman Rear Admiral John Kirby said the measure included all military exercises, port visits, bilateral talks and planning conferences.
"We call on Russia to de-escalate the crisis in Ukraine and for Russian forces in Crimea to return to their bases, as required under the agreements governing the Russia Black Sea Fleet," he said.
Vitaly Churkin shows the letter purportedly from Viktor YanukovychIt came as Moscow's UN envoy told a stormy meeting of the United Nations Security Council that Ukraine's ousted leader Viktor Yanukovych had sent a letter to Russian President Vladimir Putin requesting that he use Russia's military to restore law and order in Ukraine.
"The country has plunged into chaos and anarchy," Russian Ambassador Vitaly Churkin read from an unofficial translation of the letter while speaking to reporters after an emergency meeting of the UN Security Council.
"The country is in the grip of outright terror and violence driven by the West. People are persecuted on political and language grounds.
"In this context, I appeal to the President of Russia Vladimir V Putin to use the armed forces of the Russian Federation to re-establish the rule of law, peace, order, stability and to protect the people of Ukraine."
Barack Obama holds a meeting on Ukraine in the White House situation roomMr Churkin held up a copy of the letter for council members to see during a heated council session in which Western envoys and the Russian ambassador hurled allegations at each other for two and a half hours. He said the letter was dated March 1.
President Putin was filmed watching war games in RussiaBut US President Barack Obama warned Moscow it would find itself "on the wrong side of history" - and that Russia's deployment of troops in Ukraine violates international law.
He spoke shortly after Mr Putin's aides were forced to deny reports that Russian forces have given the Ukrainian navy until 3am (5am local time) today to surrender.
:: Putin Watches Tanks Taking Part In War Games
America said any threat by Russia to Ukraine forces would represent a "dangerous escalation" in the crisis, and Moscow would be responsible.
Ukraine says Russia has deployed 16,000 troops to Crimea over the past week.
Hundreds of Russian soldiers have surrounded a military base near the Crimean capital Simferopol, preventing Ukrainian soldiers from going in or out.
Ukraine's military might is dwarfed by Russia'sRussian forces have also seized a border checkpoint on the Ukrainian border between Russia and Crimea, Reuters reported.
US State Department spokeswoman Jen Psaki said: "At this point we are not just considering sanctions given the actions Russia is taking, it is likely we will put those in place and we are preparing that.
"We have a broad range of options available."
However, US Senator John McCain criticised Mr Obama's handling of the crisis and described him as "totally naive".
Russia denies it told Ukraine forces in Crimea to surrenderHe told Sky News it was time the US had a "cold-eyed view of Putin" and said it should immediately impose "severe economic sanctions" on Moscow and reinstall missile defence systems in the Czech Republic and Poland.
Samantha Power, US Ambassador to the UN, told the UN Security Council in New York that Russia's actions are a violation of international law and a "response to an imaginary threat".
She said there is no "legal basis" for Moscow's troop deployment and the way to resolve the crisis is through talks between Ukraine and Russia.
British Prime Minister David Cameron called for the world to send Russia a "clear message" about its actions.
He spoke separately to German Chancellor Angela Merkel and French President Francois Hollande on Monday night.
A Number 10 spokesman said: "In both calls, the leaders agreed that the international community should speak with one voice and send a clear message to Russia that its actions in Ukraine were completely unacceptable."
Nato will hold more emergency talks on the crisis on Tuesday after Poland requested consultations with its allies on the threat posed by Moscow.
The developments came as Mr Putin watched tanks and armoured vehicles taking part in military exercises at a training ground in north-west Russia.
Mr Putin attended the war games to test the combat-readiness of his armed forces in western and central parts of Russia, regions adjacent to Ukraine, a spokesman said.
The Russian foreign ministry said Nato's criticism of its actions in Crimea "will not help stabilise" the situation in Ukraine.
Earlier, it was reported that Russia had given Ukrainian forces in Crimea a deadline of 3am to surrender or face military action after troops seized key strategic sites in the peninsula.
The ultimatum reportedly came from Alexander Vitko, commander of Russia's Black Sea Fleet, which has a base in Crimea where Russian forces are now in control.
According to Russia's Interfax agency, it reads: "If they do not surrender before 5am (3am UK time Tuesday), a real assault will be started against units and divisions of the armed forces across Crimea."
But in a conflicting report, Interfax quoted an official representative for the Russian Ministry of Defence as saying the ultimatum was "total nonsense".
The crisis has had a huge effect on global stock markets, with Moscow's stock exchange plunging more than 10% on Monday.
Russia's central bank raised its rate to 7% from 5.5% as the ruble hit an historic low against the dollar and the euro.
:: Watch Sky News live on television, on Sky channel 501, Virgin Media channel 602, Freeview channel 82 and Freesat channel 202.
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