The European Union has given Russia one week to reverse course in Ukraine or face new sanctions, the BBC reports.

European Council President, Herman Van Rompuy, said the EU was working urgently on further restrictive measures.

Earlier, Ukrainian President Petro Poroshenko said his country was “close to a point of no return – full scale-war” with Russia.

Russia denies Western accusations that its forces have illegally crossed into Ukraine to support separatists there.

Pro-Russian rebels have made gains against Ukrainian troops in recent days in the eastern Donetsk and Luhansk regions.

At least 2,600 people have died in fighting.

The conflict in the east erupted in April following Russia’s annexation of Ukraine’s southern Crimea peninsula a month before.

Western leaders said there is clear evidence of regular Russian military units operating inside Ukraine with heavy weapons.

Speaking after a summit in Brussels, Mr. Van Rompuy said the EU “stands ready to take further significant steps in light of the evolution of the situation on the ground.

“Everybody is fully aware that we have to act quickly.”

He did not specify the nature of further sanctions, but said the proposals would be ready within a week.