Pro-Russian rebels have shot down two of Ukraine's army helicopters during an "anti-terror" operation in the eastern city of Sloviansk, Kiev has said.
It said a pilot and serviceman had been killed, four suspected separatists held and nine rebel checkpoints seized.
However, separatists at three Sloviansk checkpoints told the BBC they were still in control there.
Russia says Kiev's actions "killed the last hope" for a deal agreed last month in Geneva aimed at defusing the crisis.
President Vladimir Putin's spokesman Dmitry Peskov also described Ukraine's operation as "punitive".
Russia's foreign ministry earlier warned that any assaults by Ukraine's troops in the region would have "catastrophic consequences", triggering fears of an invasion by Moscow.
Separately, reports are coming in that several foreign journalists have been detained in Sloviansk.
Sloviansk is a stronghold for pro-Russian separatists who are exerting increasing control in the region.
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