At least two civilians have been killed in heavy clashes on the outskirts of the main rebel-held bastion of Donetsk in east Ukraine, as the UN warned of a "massive exodus and destruction" if fighting intensified.
Powerful explosions rocked the western Petrovksy suburb of the sprawling million-strong city, the local administration said, as government forces pushed on with an offensive to oust insurgents.
Earlier, dozens of cars packed with terrified residents could be seen fleeing the industrial hub via a perilous humanitarian corridor that ran close to the scene of the clashes.
"We are trying to leave," said a tearful elderly woman travelling with a group of people in a taxi.
At a Ukrainian military checkpoint - consisting of five tanks in a sunflower field - cars started building up.
At another checkpoint, a rebel commander told AFP: "We are not stopping anyone, everyone leaves freely. They go every day."
Ukrainian forces announced Monday they were closing in around Donetsk, after already scoring significant gains over the last month.
But the rebels have pledged to fight on in the cities under their control, and government forces continue to come under heavy bombardment from separatist positions.
More than 1,150 people, mainly civilians, have died since the civil war erupted in mid-April.
The United Nations' refugee agency warned that continued fighting in eastern cities "could lead to a massive exodus and massive destruction".
Some 285,000 people have already fled their homes due to the conflict in east Ukraine, it estimated, with many leaving for other parts of the country, but close to 168,000 seeking sanctuary in Russia.
Human Rights Watch meanwhile said that rebels were hampering the work of medical services in the industrial east, hijacking ambulances to transport fighters and stealing equipment in what could amount to war crimes.
"This appalling disregard of people who are sick or wounded can be deadly and needs to stop immediately," said HRW's Europe and Central Asia researcher Yulia Gorbunova.
Russian President Vladimir Putin ordered his government Tuesday to draft a response to the sanctions, which have already forced a subsidiary of national carrier Aeroflot to ground all flights.
In a move that Ukraine's ministry of defence deemed "a provocation", Moscow has also begun large-scale military exercises in southern Russia set to last until Friday.
Kiev's military said 45,000 Russian troops were massed along Ukraine's border, a move that Washington said was alarming.
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