Vladimir Putin has warned there will be "consequences" if Ukraine has used its army against pro-Russian activists in the east.
Ukraine's interior ministry said "up to five terrorists" were killed in clashes during a military operation to clear three checkpoints in the eastern town of Slavyansk on Thursday.
Reuters is reporting Ukrainian forces have now withdrawn.
The Russian President responded: "If Kiev really began to use the army against the country's population... that is a very serious crime against its own people.
Vladimir Putin has warned of consequences"That is simply a punitive measure that will without question have consequences... including for our inter-governmental relations."
Ukraine announced on Wednesday that it was re-launching a campaign against pro-Russia insurgents occupying government buildings.
The country's military liberated a town hall in eastern Mariupol without any casualties, according to interior minister Arsen Avakov on Facebook.
He also claimed 70 people led by Russian soldiers raided a Ukrainian base at Artemivsk, wounding one soldier.
Ukrainian tanks roll into SlavyanskMr Putin's threat of consequences comes just hours after his foreign minister accused the West of instigating a "revolution" in Ukraine as part of a "geopolitical game" against Moscow.
Foreign minister Sergei Lavrov claimed the US and EU were behind the uprising that ousted Viktor Yanukovych, the pro-Kremlin president of Ukraine, in February.
"In Ukraine, the United States and the European Union tried to stage another 'colour revolution', an operation to unconstitutionally change regime," the Interfax news agency quoted Mr Lavrov as saying.
"Our Western partners, first and foremost the United States, tried to behave as winners in the Cold War and pretend that one can ignore Russia in European affairs and undertake activities that directly damage Russian security interests."
Sergei Lavrov says the West is behind the Ukraine crisisMr Lavrov added that Ukraine was being used as a "pawn in geopolitical game" against Russia.
Meanwhile, Russia's Gazprom has sent an $11.4bn (£6.7bn) gas bill to Ukraine energy firm Naftogaz - five times the original amount.
Earlier on Thursday US President Barack Obama warned Moscow could face "consequences" after accusing the Kremlin of not honouring an international agreement aimed at defusing the Ukraine crisis.
The Geneva accord between Russia, Ukraine, the US and EU called for an end to violence in eastern Ukraine and compelled armed groups to surrender weapons and leave official buildings.
Mr Obama has said further sanctions were "teed up" in case Russia continued to disregard the spirit of the agreement.
"So far at least we have seen them not abide by the spirit or the letter of the agreement in Geneva," said Mr Obama.
"Instead we continue to see malicious, armed men taking over buildings, harassing folks who are disagreeing with them, destabilising the region, and we haven't seen Russia step out and discourage it."
The West has already issued asset freezes and visa bans targeting Russian officials but has ruled out military action.
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