Crimea's parliament has formally declared independence from Ukraine and asked to join the Russian Federation.
It follows Sunday's controversial referendum which officials say overwhelmingly backed leaving Ukraine.
The government in Kiev has said it will not recognise the results. The US and EU say the vote was illegal and have vowed to impose sanctions on Moscow.
The Crimean peninsula has been under the control of pro-Russia forces since late February.
Moscow says the troops are pro-Russian self-defence forces and not under its direct control.
The EU going forward will have to review whether it is too dependent on Russia for energy. Whether EU officials realised it or not they have got drawn into a much bigger and more dangerous game than pressing for enlargement.
So, this week the challenge for the EU must be to show resolve and unity. Any divisions will be exploited by Russia. Resolve will be to deliver on consequences warned about.
The crisis follows the ousting of Ukraine's pro-Moscow president Viktor Yanukovych on 22 February after months of street protests and deadly clashes.
Ukraine's interim Prime Minister Arseniy Yatsenyuk has called the vote "a circus performance" backed up by "21,000 Russian troops, who with their guns are trying to prove the legality of the referendum".
The vote was boycotted by many among Crimea's minority Ukrainians and Tatars - who constitute about a third of the population - and the election process has been widely criticised.
Ukraine's interim President Oleksandr Turchynov said it was a "great farce" which "will never be recognised either by Ukraine or by the civilised world".
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The BBC's Ben Brown says a "huge number of people in the minority population" abstained from Sunday's vote
Crimea's declaration
According to the declaration approved by Crimean MPs, the region:
- becomes an independent state and applies to formally join Russia, with some autonomy
- will adopt the Russia rouble as its currency within a month
- will move to Moscow time (GMT+4 and two hours ahead of Kiev time) on 30 March
- will offer Crimean soldiers the chance to join Russian military
Meanwhile, the parliament in Kiev has formally approved the partial mobilisation of 40,000 reservists.
Andriy Parubiy, secretary of the National Security and Defence Council, said what had taken place in Crimea was "blatant aggression" and that the mobilisation would prevent similar action in south-eastern Ukraine, which has seen pro-Moscow rallies in recent weeks.
Clock changeAccording to the vote in Crimea's parliament on Monday, Ukrainian laws now no longer apply in the region, and all Ukrainian state property belongs to an independent Crimea.
The document approved by MPs also appealed to "all countries of the world" to recognise Crimean independence.
Crimea's pro-Russia leader Sergei Aksyonov said he was travelling immediately to Moscow to discuss the next steps.
The peninsula will adopt the Russian currency, the rouble, and clocks will move two hours forward to Moscow time by the end of March.
"Start Quote
End Quote IrinaNobody asked us if we wanted to be part of the EU. We are not ready here. In 22 years, not a penny was invested in Crimea"
Russia is now expected to fast-track the legislation enabling it to absorb Crimea.
President Vladimir Putin is to address both houses of parliament on Tuesday.
Tatar boycottCrimea has been under the control of pro-Russian armed forces since late February.
The referendum was called by the Crimean parliament in early March, with voters asked to choose between joining Russia or having greater autonomy within Ukraine.
There was no option for those who wanted the constitutional arrangements to remain unchanged.
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Daniel Sandford reports from Crimea: ''Wild scenes in Simferopol''
Ukraine's chief electoral official, Mikhail Malyshev, said the vote was nearly 97% in favour of joining the Russian Federation, with a turnout of 83%.
But Crimea's Tatars - about 12% of the population - expressed fears their lives would be worse under the Kremlin.
The Tatars were deported to Central Asia by Soviet dictator Joseph Stalin in 1944. They were only able to return with the fall of the Soviet Union and many want to remain under Ukrainian rule.
Many ethnic Ukrainians - who make up 24% of Crimea's population - also said declined to vote.
Crisis timeline
- 21 Nov 2013: President Viktor Yanukovych abandons an EU deal
- Dec: Pro-EU protesters occupy Kiev city hall and Independence Square
- 20-21 Feb 2014: At least 88 people killed in Kiev clashes
- 22 Feb: Mr Yanukovych flees; parliament removes him and calls election
- 27-28 Feb: Pro-Russian gunmen seize key buildings in Crimea
- 6 Mar: Crimea's parliament votes to join Russia
- 16 Mar: Crimea voters choose to secede in disputed referendum
- 17 Mar: Crimean parliament declares independence and formally applies to join Russia
The EU - which has already suspended talks on an economic pact with Russia and an easing of visa restrictions - is discussing its response.
Speaking in Brussels, EU foreign policy chief Catherine Ashton said the "so-called referendum" was "illegal under the constitution of Ukraine and under international law".
"I call upon Russia yet again to meet with Ukrainian leaders and to start a dialogue with them, and to try to move to de-escalation, please, as quickly as possible," she told reporters.
The EU "can't simply sit back and say this situation can be allowed to happen", she added.
The bloc hoped to send "the strongest possible signals to Russia, a signal trying to ensure that they understand the seriousness of the situation".
EU foreign ministers are expected to discuss a possible visa ban and an asset freeze against a number of Russian officials.
The White House has described Russia's actions in Crimea as "dangerous and destabilizing", and said the international community would not recognise the results of a poll "administered under threats of violence".
US President Barack Obama has warned Moscow that Washington is also ready to impose "costs" over its actions in Ukraine.
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