European Commission President Jose Manuel Barroso has said the EU is prepared to toughen sanctions against Russia over the Ukraine crisis but also that it wanted a political deal to end the confrontation.
At a news conference in Brussels with Ukrainian President Petro Poroshenko, Mr Barroso said: "We are ready to take very strong and clear measures but we are keeping our doors open to apolitical solution."
He described any tightening of sanctions as intended not to escalate the crisis but to push Moscow to negotiate and he stressed that the EU did not want confrontation - "it makes no sense to have ... a new Cold War" - and said that would be "detrimental to all of Europe".
Mr Poroshenko, echoing comments by EU officials, said he expected a summit of EU leaders to make a formal request to the EU's executive Commission to draw up new sanctions measures that could be implemented if necessary.
Commission President Barroso noted that his staff already had a broad range of options to propose to member states.
Lithuanian President Dalia Grybauskait also sharply warned Russia on her arrival at the summit, saying Russia was practically at war with Europe, urging tougher sanctions against Moscow.
Ms Grybauskaite said "Russia is at war against Ukraine and that is against a country which wants to be part of Europe. Russia is practically in war against Europe," as she arrived for an EU summit.
She added sanctions so far "were too general, not targeted enough...This was a big mistake."
Finnish Prime minister Alexander Stubb later urged fellow European Union leaders "to be very firm" in their response to reports of Russian troops fighting inside Ukraine.
"We'll probably discuss further sanctions," Stubb said, adding these could target financial services, armaments, dual-use products and energy.
EU summit to appoint senior positions
Taoiseach Enda Kenny is in Brussels today for the EU leaders summit where it is widely expected that the Polish Prime Minister, Donald Tusk, will be appointed President of the European Council - replacing Herman Van Rompuy.
The President is the person who chairs EU leaders summits and is tasked will securing compromise among the 28 Member States.
It is also predicted that Italy's foreign minister, Federica Mogherini, will take over from Catherine Ashton as the EU's foreign policy chief.
Last month, EU leaders failed to agree on candidates for two top EU jobs.
It is now expected that the current Polish Prime Minister Donald Tusk will take over from Herman Van Rompuy as Council President - reflecting a strong desire by eastern countries to finally hold a senior position in the Union.
Mr Tusk is a centre-right politician and so it is expected that the Italy's centre-left Foreign Minister will take over from Britain's Cathy Ashton as High Representative for Foreign Affairs and Security Policy.
The political horse-trading and consequent delay in appointments has been something of an embarrassment for the EU, at a time of major international upheaval in Iraq and Syria, Gaza and Israel as well as Eastern Ukraine.
European Union Socialists have agreed to back Italian Foreign Minister Federica Mogherini as the bloc's new foreign policy chief, Germany has said.
Meanwhile, French President Francois Hollande has announced that EU leaders will hold a summit in Italy in early October aimed at boosting growth and jobs in the bloc.
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