"As a result of shelling and clashes two Ukrainian soldiers were killed, 21 more were wounded," Vladyslav Seleznyov, spokesman for Ukraine's General Staff, told reporters.
Russian-backed separatists cover their ears as they fire a mortar towards Ukrainian troops outside the village of Sanzharivka, northeast of Debaltseve
08.50 Ukraine may not be getting a peace deal, but it is getting some money, Roland Oliphant writes.
The International Monetary Fund this morning announced a $17.5 billion rescue plan for Ukraine that could help Kiev stave off looming bankruptcy but will oblige Petro Poroshenko's government to implement painful and potentially deeply unpopular reforms.
Christine Lagarde, the head of the IMF, said the bailout could be a "turning point" for Kiev.
"I am pleased to announce that the IMF team working in Kiev has concluded a staff-level agreement with the Ukrainian government on a new economic reform programme that would be supported by an extended fund facility of about $17.5 billion (15.5 billion euros) from the IMF," Ms Lagarde told a news conference in Brussels.
"It is an ambitious programme; it is a tough programme; and it is not without risk," Ms Lagarde said.
"But it is also a realistic programme and its effective implementation, after consideration and approval by our executive board, can represent a turning point for Ukraine."
08.31 This gif produced by Tom Shiel shows the rebels' control of areas has increased since September.
08.26 The International Monetary Fund and conflict-torn Ukraine have reached a preliminary deal on a new financial rescue plan worth $17.5 billion dollars, the organisation's chief Christine Lagarde said on Thursday, AFP reports.
08.21 To add to the confusion, separatist leaders are now reported to have rejected the outline agreement hammered out by Mr Putin, Mr Poroshenko, Mrs Merkel and Mr Hollande, Roland Oliphant writes from Kiev.
Alexander Zakharchenko and Igor Plotnitsky, the leaders of the self proclaimed Donetsk and Luhansk People's Republics, are in Minsk where they are attending a meeting of a multilateral "contact group," but are not party to the talks between Mr Putin and Mr Poroshenko.
Leader of the self-declared Donetsk People's Republic Alexander Zakharchenko (L) stands next to kneeling captive Ukrainian soldiers
Earlier this morning Vladislav Surkov, a close adviser to Vladimir Putin, was seen leaving Independence Palace, where the talks are taking place. Russian journalists said he had been dispatched to inform Mr Zakharchenko and Mr Plotnitsky of the details of the deal agreed by the four leaders.
08.06 Reuters confirms the leaders of Ukraine, Russia, Germany and France have returned to the negotiating room in Minsk, resuming talks on the Ukraine conflict.
07.57 More from AFP: "There is always hope," said a tired Mr Poroshenko. "We're in non-stop talks, as you can see, the situation is very difficult, Angela Merkel and President François Hollande are helping us a lot, but for now the situation is difficult."
Earlier, a diplomatic source told AFP there was hope that a contact group including representatives of Ukraine, Russia, the rebels and the Organization for Security and Cooperation in Europe (OSCE), which is meeting in parallel, could reach a deal on "concrete implementation" of a failed September peace deal.
One of the main sticking points of the failed September "protocol" is who controls the 400 kilometre (250 mile) stretch of Russia's border with rebel-controlled Ukraine. Kiev accuses Moscow of pouring troops and weapons across the border to bolster the insurgency, charges the Kremlin denies.
07.55 Good morning and welcome to the Telegraph's live coverage of the Minsk peace talks. Petro Poroshenko, the Ukrainian president, says there is no good news yet in a break during the marathon four-way peace summit in Minsk. The leaders from France, Ukraine, Russia and Germany have been in talks for 14 hours and it looks set to continue.
Mr Poroshenko told AFP: "Unfortunately there's no good news yet. There are conditions that I consider unacceptable" being posed by Russia, he said, declining to elaborate.
"The (negotiations) process is ongoing."
The talks have taken place at the presidential palace in Minsk since yesterday evening, the hope is that a ceasefire will be agreed.
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