Ukraine and Russian-backed rebels fought fiercely across the east of the country yesterday despite a new peace deal brokered by Germany and France.

A ceasefire is due to come into effect from today under the agreement, which also envisages a withdrawal of the heavy weapons responsible for many of the 5,000 casualties in the conflict that broke out almost a year ago.

Kiev said pro-Russian rebels had built up their forces across separatist-held zones since the deal and both sides accused each other of killing civilians.

Two people were killed and six wounded when a shell hit a cafe in the Kiev-controlled town of Shchastya near rebel-held Luhansk in eastern Ukraine, a local official said, adding that other shells had struck elsewhere in the town.

Pro-Russian rebels have built up their forces across separatist-held zones since the deal

“The town’s heating system is broken, power lines are damaged as well as the water supply ... So this is how a comprehensive ceasefire is prepared for,” the head of the Kiev-controlled administration, Hennadiy Moskal, said online.

The rebels accused Ukrainian forces of shelling the separatist stronghold of Donetsk. Outgoing fire from the Ukrainian side was visible on the road between Kiev-controlled Kramatorsk and rebel-held Donetsk and rebels at a checkpoint near Donetsk said they had been hit by mortar strikes. They mocked the impending truce.

“What sort of ceasefire? Don’t make me laugh. This is already the second or third ceasefire,” one said.

The deal, sealed by the leaders of Germany and France after 16 hours of all-night talks in Minsk, capital of Belarus, with the Russian and Ukrainian presidents, was soon overshadowed by the clashes.

A Ukrainian military spokes-man said 11 soldiers had been killed and 40 wounded in the past 24 hours. “The enemy continues to build up forces in the main areas of the armed conflict,” Andriy Lysenko said.

A woman removing debris in front of her house, which was damaged during fighting between pro-Russian rebels and Ukrainian government forces, in eastern Ukraine yesterday. Photos: Reuters

Fighting was intense around Debaltseve, a railway junction linking the two main rebel areas, where separatists used rockets and artillery to attack government forces holding the town.

“Rebels are repeatedly storming the strongholds and base camp of Ukrainian forces,” in and around Debaltseve as well as firing artillery, mortars and rockets, Lysenko said, stressing that government troops had held their positions.

The United States and Europe have threatened further sanctions against Moscow if the rebels seize more territory. Ukraine’s pro-Western President said he was not naive and wanted to make clear the country was a long way from peace.

“Nobody has a strong belief that the peace conditions which were signed in Minsk will be implemented strictly,” Petro Poroshenko said.

Western diplomats said the EU would go ahead on Monday with already planned sanctions against 19 Ukrainian separatists and Russians, despite the ceasefire.

Nato and the US said the fighting ran counter to the spirit, if not the letter of the agreement and US officials said further sanctions were still on the table.

At an EU summit in Brussels, the leaders of Germany, France and the European Council also said new sanctions were possible.

Russia’s economy minister said he hoped sanctions would be lifted soon.