Updated | Barroso warns Ukraine situation might reach 'point of no return'

European Commission President Jose Manuel Barroso warned that the situation in Ukraine might reach a point of no return unless a political situation is found to the stand-off between Russia and Kiev.

Echoing comments by Western leaders that the separatists seeking independence are being aided militarily by Moscow, NATO's Secretary General Anders Fogh Rasmussen yesterday said Russia was supplying pro-Kremlin separatists in Ukraine with tanks, armoured vehicles, rocket launchers and artillery.

During a visit in Brussles by Ukrainian President Petro Poroshenko, Barroso said “the situation in Ukraine touches both Europe and the wider international community. This is a matter of grave and global concern.”

The EU Commission President explained that he had been in touch with Russian President Vladimir Putin, adding “we are in a very serious, I would say, dramatic situation. We may see a situation where we reach the point of no return. If the escalation of the conflict continues, this point of no return can come.”

However, Barroso said that “it's still not yet too late to find a political solution.” He added that the international community, including the EU should do its utmost to avoid an escalation.

“That would certainly be detrimental to the interests, first of all, of Ukraine but certainly also of Russia and of Europe as a whole. We are working based on the principles and we respect those principles at the same time it is our duty to call the attention of all those involved to the risks of further escalation.”

Earlier, French President Francois Hollande said the Ukraine crisis was the biggest since the end of the Cold War.

"Sanctions will no doubt be increased," Hollande said, adding "Europe has to act. It already has. But in the face of this escalation in tension, there are new decisions to be taken," he said.

The EU and the US have already imposed sanctions against dozens of senior Russian officials, separatist commanders and Russian firms accused of undermining Ukrainian sovereignty.

Russia denies that its forces are backing rebels, who have been gaining ground on Ukrainian forces.

Furthermore, EU foreign policy chief Catherine Ashton accused Russia of "direct aggression" in eastern Ukraine, while Lithuanian President Dalia Grybauskaite said Moscow was "practically in a war against Europe".

Ashton said there was "deep concern" over "direct aggression by Russian forces". She called on Russia to stop the flow of arms, equipment and personnel into Ukraine.

@PES_PSE top priorities remain economic growth and #jobs. #Europe needs to change direction to compete globally -JM #EUCO

— Joseph Muscat (@JosephMuscat_JM) August 30, 2014

Earlier in the day, Prime Minister Joseph Muscat together with the Socialist leaders of the European Union gathered at the Élysée ahead of this afternoon’s Council meeting in Brussels.

Led by French President François Hollande, a formal meeting of the Party of European Socialists (PES) agreed the Socialist leaders should advocate a relaxation of fiscal discipline in the EU.

Taking to Twitter, the Maltese Prime Minister confirmed that top priorities remain economic growth and jobs.

“Europe needs to change direction to compete globally,” Muscat reiterated.

He added that the Socialists wanted consensus to be reached on the presidency of the European Council.

@PES_PSE will seek a consensus candidate for #EUCO Presidency -JM

— Joseph Muscat (@JosephMuscat_JM) August 30, 2014

Over the past months, Muscat was amongst the EU leaders adovcating a change in the EU’s fiscal policy arguing that austerity measures led to the creation of social injustices and the portrayal of an EU as insensitive to the citizens’ needs.

According to Muscat, economic growth and education were the keys to combat unemployment and youth unemployment, while criticising the EU as it risked losing out on opportunities to remain a global economic leader due to excessive red tape.

A row on who should be the next EU economic affairs commissioner has developed between Germany and France, with the latter insisting it wants the portfolio itself and Germany suggesting it would not be right for a French person to hold the post while France is having difficulty adhering to euro rules.

The EU Summit is set to discuss the appointment of a new President of the European Council, replacing Herman Van Rompuy and the appointment of a new High Representative for Foreing Affairs and Security Policy, replacing Catherine Ashton.

The new President of the European Commission, Jean-Claude Juncker, was reported to be convinced that the composition of the future Commission should only be decided once leaders decide who should succeed Van Rompuy and Ashton.

A second issue which the EU leaders must address is the appointment of female Commissioners. Reportedly, only four women are likely to be part of the next EU executive, compared to the seven women in the present EU Commission. The European Parliament has insisted that gender balance should be safeguarded.

The only four countries to nominate a female Commissioner are Italy, Bulgaria, Czech Republic and Sweden.

The European Council will also be discussing the international situation with special emphasis on the crisis in Ukraine, Iraq and Gaza.