EU To Draft Urgent Sanctions Against Russia

European Union leaders are preparing to impose urgent new sanctions on Moscow after Russian tanks reportedly attacked a town near the Ukrainian border city of Luhansk.

Ukrainian President Petro Poroshenko said tanks had been used to "destroy virtually every house" in the town of Novosvitlivka.

There were now thousands of foreign troops and hundreds of foreign tanks inside Ukraine, he told a press conference in Brussels ahead of an EU summit.

EU leaders will say they stand ready to take further steps against Russia depending on developments on the ground, according to a draft statement seen by Reuters.

They will ask the EU's executive Commission and the EU's diplomatic service to work together "to urgently undertake preparatory work" on further sanctions.

Speaking before the summit, British Prime Minister David Cameron said: "We have to address the completely unacceptable situation of having Russian troops on Ukraine soil.

Satellite imagery reportedly shows Russian military vehicles inside Ukraine

"Consequences must follow if that situation continues and we will be discussing that as well today."

Mr Poroshenko said: "Thousands of foreign troops and hundreds of foreign tanks are now on the territory of Ukraine.

"There is a very high risk not only for peace and stability for Ukraine but for the whole peace and stability of Europe."

In a tweet, Kiev's defence and security council said: "Direct military aggression against eastern Ukraine is continuing."

Lithuanian President Dalia Grybauskaite called for a stepped up arms embargo on Russia.

She said: "It is the fact that Russia is in a war state against Ukraine. That means it is in a state of war against a country which would like to be closely integrated with the EU.

This image shows trucks and armoured vehicles near the Russia border

"Practically Russia is in a state of war against Europe."

Nato released images apparently showing Russian forces on the ground in eastern Ukraine.

Government sources said separatists are believed to have heavy weaponry supplied by President Vladimir Putin.

Included in the weaponry are 100 tanks and artillery pieces, anti-tank weapons and shoulder-mounted missile launchers, the sources said.

Russia has repeatedly dismissed accusations it has sent soldiers or equipment across the border.

US President Barack Obama said the satellite pictures made it "plain" that Russia had "deliberately and repeatedly violated the sovereignty and territorial integrity of Ukraine".

He said: "The violence is encouraged by Russia. The separatists are trained by Russia, they are armed by Russia, they are funded by Russia."

Nato Secretary-General Anders Fogh Rasmussen said: "Despite Moscow's hollow denials, it is now clear that Russian troops and equipment have illegally crossed the border into eastern and southeastern Ukraine.

"Russian forces are engaged in direct military operations inside Ukraine."

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