Kiev forces have pulled back from the airport of Luhansk in eastern Ukraine after having fought pro-Russian separatist for hours.

The country's security council confirmed the move in a statement quoted by UNIAN news agency.

Meanwhile reports emerged that a Ukrainian warship had been attacked by separatists in the Azov sea. Kiev says the cutter was assaulted from the coast.

If verified, this will be the first at-sea incident since the conflict erupted in April.

While the latest battle was raging, it was also announced a new Russia-Ukraine meeting is due to be held Monday with the brokerage of the Organization for Security and Cooperation in Europe (OSCE) and will be aimed at easing down tensions in Ukraine's east.

Unlike a number of previous meetings, rebel representatives are likely to attend.

Ukrainian President Petro Poroshenko accused Russia of "direct and open" aggression at Ukraine which has shifted the balance of power between Kiev forces and rebels. He added top-level changes within the military ranks were to be made after a series of defeats.

His counterpart Vladimir Putin, on the other hand, believes Europe is turning a blind eye on the atrocities of Ukraine's army.

In his view, outlined in an interview with a Russian TV station broadcast Sunday, the talks should be aimed at "not just technical issues but on the political organisation of society and statehood in south-eastern Ukraine".

Foreign Minister Sergey Lavrov commented on the forthcoming meeting, arguing he expected an immediate and unconditional ceasefire as a result of the talks.

He ruled out that Moscow could engage in a military intervention.

The diplomatic effort follows a new ultimatum that EU leaders issued to Russia on Sunday.

After an extraordinary summit they warned that new sanctions would ensue if Moscow didn't "withdraw all its military assets and forces from Ukraine".

Russia has seven days to respond before new measures are prepared.

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