The leaders of Ukraine, Russia, France and Germany have agreed on a roadmap aimed at ending a 10-month war between Kiev and pro-Moscow rebels, but scepticism looms large as the West warned "much work" still needed to be done.
After a marathon summit in the Belarusian capital Minsk, Russian President Vladimir Putin said he, Germany Chancellor Angela Merkel, French President Francois Hollande and Ukrainian President Petro Poroshenko had reached a ceasefire deal.
Echoing cautious remarks from other leaders, Poroshenko described the 17-hour talks as "very difficult" and said he expected the implementation of the deal would not be easy.
Under the agreement, a ceasefire is to take effect at midnight on Saturday Kiev time (0900 AEDT Sunday) and heavy weapons are to be withdrawn from the front lines of the conflict.
Hollande described the deal as "a comprehensive political solution", while Merkel spoke only of a "glimmer of hope".
"I have no illusions. We have no illusions," she said, adding that "much work" remained.
The US, which has said it could supply Ukraine with weapons if the conflict continues, cautiously welcomed the accord.
"The true test of today's accord will be in its full and unambiguous implementation," the White House said, including "restoration of Ukrainian control over its border with Russia".
Kiev and rebel sources said fighting over the past 24 hours had killed 14 civilians and two Ukrainian soldiers.
The Ukrainian government also accused Russia of deploying another 50 tanks across the border overnight, with fighting expected to continue around disputed railway hub Debaltseve, which rebels claim to have surrounded.
Hollande, Merkel and Poroshenko flew from Minsk to Brussels for a European Union summit, where the French leader said it was essential to keep up pressure to ensure the accord's success.
Poroshenko, also speaking in the Belgian capital, said: "It was very difficult negotiation and we expect not easy implementation process."
European Council president Donald Tusk said Poroshenko had given EU leaders a "sobering assessment" of the deal.
Tusk said the 28-member bloc was ready "to take the necessary steps" to keep up the pressure on Russia, already hit by EU and US sanctions for its role in the crisis.
"Our trust in the goodwill of President Putin is limited, this is why we have to maintain our decision on sanctions," he said.
Tusk added that the EU would go ahead with new sanctions against 19 Russian and Ukrainian individuals and nine entities next week, measures that had been suspended earlier to give the Minsk talks a better chance.
The roadmap was signed by Russian and Ukrainian envoys, separatist leaders and European mediators from the OSCE.
The latest talks were seen as a last opportunity for European leaders to save nearly bankrupt Ukraine from ever-widening defeats at the hands of rebels said by Kiev and the West to be armed and trained by Russia.
In rebel-held Donetsk, weary residents expressed little optimism.
"I don't believe in it at all," said Lyubov, 62, who would not give her last name. "Every time they sign an agreement, they say one thing and do another. I no longer trust anyone."
The Kiev government got a major boost on Thursday with the announcement by IMF chief Christine Lagarde of a new financial rescue plan worth $17.5 billion.
In total, Ukraine will receive $US40 billion ($A51.60 billion) in assistance over four years coupled with bilateral loans from other sources, Lagarde said, helping to stabilise Kiev's finances after 10 months of conflict in the east.
The World Bank for its part announced it was prepared to provide up to $US2 billion in financial assistance to Ukraine this year.
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