Rebels have pounded a residential area in a government-held port in the south-east of Ukraine - killing ten people, police have said.
Ukraine's Interior Ministry said rockets hit a busy open air market in the port city of Mariupol as well as homes and shops, setting some alight - a military checkpoint was also hit.
It condemned the attack on ordinary residents.
Pro Russian separatists have launched a fresh advance in recent days threatening to increase their campaign - potentially dashing European hopes of a protracted cease-fire.
A peace deal signed was signed in September but is has been repeatedly violated by both sides.
There has been a significant increase in fighting in the last two weeks and the United Nations says 262 lives have been claimed in the past nine days alone.
However, the separatists have denied responsibility for the attack saying: "This is blatant misinformation and a lie. Rebel forces did not open any fire in the direction of Mariupol, especially not on residential areas."
Mariupol city council dismissed suggestions Ukrainian armed forces were planning to withdraw from the government-held city, which is strategically important because it lies between mainland Russia and Crimea, which was annexed by Russia in March.
In a statement, urging residents not to panic, the council said: "On the contrary, all units are on fully battle-ready. Security measures in the city have been strengthened."
Vyacheslav Abroskin, the head of the regional police posted on Facebook: "As a result of shelling by rebels of a residential sector of Mariupol ... ten people have been killed."
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