Russia sanctions warning if Putin doesn't stick to ceasefire as Ukraine shelling rages on

RUSSIA will face fresh sanctions if it does not adhere to the EU agreement to ceasefire in the Ukraine, David Cameron warned.

Merkel and Hollande congratulating each other yesterdayGETTY

Putin will face pressure from the other world leaders

Civil war continued in Ukraine yesterday despite hopes of peace raised by the prospect of a new ceasefire agreement.

Witnesses reported heavy shelling in the east of the former Soviet state.

Dozens of tanks, missile systems and armoured vehicles crossed the border from Russia, they said.

Two Ukrainian soldiers were killed and Kremlin forces began military exercises in 12 regions on the Russian side of the border.

But Kiev and Moscow were optimistic about the deal arranged by Germany’s Angela Merkel and France’s Francois Hollande yesterday.

They said the truce starting on Sunday could end Ukraine’s conflict with Russian-backed separatists, in which more than 5,300 people have died.

Putin yesterday after the talksGETTY

Russias President Vladimir Putin announced the ceasefire

Russian president Vladimir Putin, who denies arming the rebels, announced the ceasefire after all-night talks in the Belarus capital Minsk.

But last night David Cameron warned that Russia would face sanctions if Putin's behaviour did not change.

He said: "What mattered today was that we sent a very clear message that unless Russian behaviour changed and Putin’s behaviour changed then sanctions should stay in place.

"That’s very much the message coming out of this Council meeting.

“What really matters now is that on the ground actual things happen rather than just words being said. That means heavy weapons need to be removed, it means a proper ceasefire has to be put in place, it means that people actually have to do the things they have signed up to do.

“If that happens it’ll be progress but we should wait and watch to see whether that happens before we make a judgment.”

Ms Merkel, was still hopeful Russia would stick to its ceasefire, she added: “We now have a glimmer of hope but we will still face major obstacles.”

David Cameron, who was in Brussels for an EU summit to discuss the deal, said Mr Putin must honour its terms.

“If this is a genuine ceasefire, then that would be welcome,” he said.

“But what matters is actions on the ground rather than words on a piece of paper 

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