Ukraine Ceasefire Holds With Pro-Russian Rebels

Fighting is reported to have subsided in eastern Ukraine after the government agreed a ceasefire with pro-Russian rebels.

Ukraine's President Petro Poroshenko confirmed on his Twitter account that a peace plan had been signed, while pro-Russian rebels also announced the news on the social media site.

There were initial reports of shelling in the rebel stronghold of Donetsk moments after the deal came into force at 4pm UK time, but the area later fell quiet.

The deal was reached after talks between Ukraine and pro-Russian rebels in the Belarussian capital, Minsk. Officials from Russia and the OSCE security watchdog also participated.

The deal saw an agreement on the release of prisoners on both sides, the delivery of humanitarian aid and the withdrawal of heavy weapons. 

Nato leaders say they hope the truce will foster a lasting peace deal

Speaking at a Nato summit in Wales, Mr Poroshenko said Kiev was also ready to grant a significant decentralisation of power and economic freedom to the turbulent east.

It is hoped the deal will go some way towards ending the five-month conflict that, according to the UN, has killed more than 2,600 people.

"Human life is the highest value and we must do everything possible and impossible to end the bloodshed and the suffering," Mr Poroshenko said.

A spokesman for Russian President Vladimir Putin, meanwhile, said Russia was hopeful the ceasefire would be "thoroughly implemented" and that all sides would continue talks to reach a "full settlement of the Ukraine crisis."

The West has accused Russia of sending troops and tanks to participate in the conflict, something Moscow has consistently denied. 

A man repairs the damage to a building caused by shelling in Donetsk

Despite the deal European leaders agreed to hit Russia with a fresh round of sanctions, including credit restrictions on Russian companies and export bans.

Further Russian officials were issued travel bans and asset freezes.

Speaking after the summit Prime Minister David Cameron indicated the sanctions may be lifted if the ceasefire leads to a more durable peace deal.

However US President Barack Obama admitted there was a degree of pessimism about the chances of lasting peace.

He said he was "hopeful but based on past experience also sceptical that the separatists will follow through and the Russians will stop violating Ukraine's sovereignty and territorial integrity".

David Cameron said sanctions would stand despite the truce

Sky's Katie Stallard, who is on eastern city limits of Mariupol, said soldiers from both sides remained in position and that it was difficult to see the ceasefire holding "long term".

"No one has much faith in the ceasefire here," she said.

"There is scepticism about the timing. President Putin has come up with the peace plan right at the point European leaders were preparing to finalise tougher sanctions on Russia.

"What this also doesn't resolve is that we're hearing from the self-proclaimed prime minister of the Lugansk People's Republic, who is saying that this ceasefire doesn't address the status of their 'republic' and they do not abandon their plans to separate from Ukraine."

Meanwhile, Nato announced plans to create a 'Spearhead' rapid response force to counter Russian aggression in Ukraine.

But Moscow said joint military exercises planned by Kiev and Nato in Ukraine - and announced along with the Spearhead force - could undermine peace moves.

Russia's foreign ministry said in a statement that military exercises - planned for September 16-26 - would cause "increased tensions, threaten the tentative progress in the peace process in Ukraine and contribute to the aggravation of a split in the Ukraine society."

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