European Union leaders on Sunday gave Russia a week to reverse course in Ukraine or face a new round of sanctions as Kiev warned it was on the brink of "full-scale war" with Moscow.
Fears are growing that the confrontation on the EU's eastern borders could engulf the whole continent after Russia sent troops to back a new offensive by pro-Kremlin rebels in southeastern Ukraine.
EU President Herman Van Rompuy said the 28 leaders meeting in Brussels agreed to take "further significant steps" if Moscow did not back down.
The European Commission, the EU's executive arm, has been ordered to produce options for new sanctions within a week, he said.
"Everybody is fully aware that we have to act quickly given the evolution on the ground and the tragic loss of life of the last days," Van Rompuy told a news conference.
German Chancellor Angela Merkel said the new sanctions would build on existing measures against Russia which mainly cover financial services, armaments and energy.
Fears are growing that the confrontation on the EU's eastern borders could engulf the whole continent after Russia sent troops to back a new offensive by pro-Kremlin rebels in southeastern Ukraine.
EU President Herman Van Rompuy said the 28 leaders meeting in Brussels agreed to take "further significant steps" if Moscow did not back down.
The European Commission, the EU's executive arm, has been ordered to produce options for new sanctions within a week, he said.
"Everybody is fully aware that we have to act quickly given the evolution on the ground and the tragic loss of life of the last days," Van Rompuy told a news conference.
German Chancellor Angela Merkel said the new sanctions would build on existing measures against Russia which mainly cover financial services, armaments and energy.