Obama warns Putin before peace talks

US President Barack Obama warns President Vladimir Putin that Russia would face worse consequences if it continued its actions in Ukraine

Obama has urged Putin in a phone call to agree to a peace deal with the Ukranian government.

A statement issued by the White House on Tuesday said: “If Russia continues its aggressive actions in Ukraine, including by sending troops, weapons, and financing to support the separatists, the costs for Russia will rise.”

In its statement about the call, the Kremlin said that the Ukraine crisis was an "internal" conflict.

Ukraine and the West accuse Russia of supplying and training the heavily armed separatists, but Russia continues to deny the claims. 

The leaders of Ukraine, Russia, Germany and France are expected to meet for peace talks in the capital of Belarus, Minsk on Wednesday.

The renewed fighting brought calls in the West for more pressure against Moscow, with Obama considering whether to deliver lethal weapons to Kiev.

Obama met German Chancellor Angela Merkel on Monday but announced no decision on weapons, despite several senior officials in his administration coming out last week in favour of sending arms. European countries have opposed sending arms to Kiev, arguing that would escalate the war.

On Tuesday, rockets crashed into the eastern Ukrainian city of Kramatorsk, about 50km north of the front line, hitting the headquarters of the Ukrainian military campaign in the east, as well as nearby residential areas.

The government-controlled Donetsk regional administration said 12 people were killed and 64 wounded, including 29 civilians. Local officials said at least seven of the dead were civilians.The rebels have denied firing on the town.

More than 5,400 people have lost their lives since the conflict began and civilian casualties have risen in recent weeks.