EU gives Russia new sanctions ultimatum

European Union leaders on Aug. 31 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.

British Prime Minister David Cameron said it was "totally unacceptable that there are Russian soldiers on Ukrainian soil." Talking of a "deeply serious situation" he warned Russia that "if she carries on in this way the relationship between Europe and Russia, Britain and Russia, America and Russia will be radically different in the future."                       

The sanctions plan came after Ukrainian President Petro Poroshenko visited Brussels to urge the EU to take tougher steps against Russia which he accused of "military aggression and terror."       

"We are very close to the point of no return, the point of no return is full-scale war, which is already happening in the territories controlled by the...