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But leaders appeared divided between nations close to Russia borders and some western economic powerhouses notably Germany that were taking a more dovish line.

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Cameron, Merkel, French President Francois Hollande and Polish Prime Minister Donald Tusk held initial talks to co ordinate their strategy before the summit. The 28 leaders then opened their meeting with talks with Ukraine new prime minister, Arseniy Yatsenyuk.

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Ukraine economy is faltering and the country is running out of cash. The government in Kyiv estimates it will need $35 billion in bailout loans for this year and next.

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BRUSSELS Russia will face sanctions over its military incursion in Ukraine Mens Nike Air More Uptempo

need to send a very clear message to the Russian government that what has happened is unacceptable and should have consequences, British Prime Minister David Cameron said as he arrived at an emergency meeting of the bloc 28 leaders in Brussels.

Poland, Lithuania and other eastern European countries closer to Russia borders pushed for a strong and united EU response including meaningful sanctions, but Germany, the Netherlands and others preferred defusing the crisis through diplomacy without alienating Moscow.

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(sanctions) will come into force depends also on how the diplomatic process progresses, German Chancellor Angela Merkel said, noting that foreign ministers including Secretary of State John Kerry and Russia Sergey Lavrov were holding talks again in Rome on Thursday.

Russia is Europe third largest trading partner and its biggest gas and oil supplier. EU exports to Russia in 2012 totalled 123 billion euros ($170 billion), and European banks have about 200 billion euros in outstanding Nike More Uptempo Black And White loans to Russia.

today is dangerous, insisted Lithuanian President Dalia Nike Air Total Max Uptempo Silver Black

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should do everything to give the route of de escalation a chance and if we come to the conclusion today or the next 24, 48, 72 hours that de escalation is not an option then obviously sanctions are back on the table, Dutch Prime Minister Mark Rutte said.

28 leaders to decide on sanctions against Russia over Ukraine conflict

Grybauskaite, warning Moscow is seeking to expand its borders. Ukraine will be Moldova, and after Moldova will be different countries. initial sanctions Moscow could face are the suspension of talks on visa liberalization and an economic agreement. More drastic steps Nyc Nike Uptempo

The EU also offered Ukraine a wide ranging free trade and economic agreement that would draw Kyiv closer to Europe and help boost its economy.

The United States has already suspended talks on an investment treaty and threatened further steps. NATO on Wednesday suspended most of its meetings with Russian officials, halting military co operation and deciding to review all aspects of its relationship with Moscow.

At a protest close to the summit in Brussels, Ukrainian Myroslava Finiw said he wanted the leaders to take tough measures.

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Crimean peninsula unless it withdraws its troops or engages in credible talks to defuse the situation, European leaders said Thursday.

like asset freezes and travel bans on Russian officials were unlikely to be adopted, not least because of Europe close economic ties with Russia.

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cannot go back to business as usual, Merkel said.

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is not just the Ukrainian Russian crisis, this is the crisis in Europe, Yatsenyuk said at a meeting earlier Thursday with European Parliament leaders.

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