KIEV, February 10 -- Pro-Russia separatists in eastern Ukraine say they have completely surrounded the strategic town of Debaltseve, a claim denied by the Ukrainian army who insist the fighting is ongoing. The self-proclaimed Donetsk People's Republic (DPR) on Tuesday said its fighters have cut off the main supply road into the government-held town - which is in between the separatist hubs of Luhansk and Donetsk. The route had also been used as a humanitarian corridor in recent weeks, allowing civilians to flee the fighting. "We have just spoken to a rebel separatist commander who tells us Debaltseve is completely surrounded by separatists. As he understands it the separatists are not in the town, the Ukrainian military are still inside," he said. "The military are denying this, saying there are ongoing battles on the main supply route out of the city. We were on that supply route yesterday and the Ukrainian military we saw were in a state of disarray. "They wanted us out immediately and were pulling back their heavy weaponry. "The situation is very fluid and there is no direct contact with the separatist fighters." Major rail hub Debaltseve is of great strategic importance to both sides in the conflict as it is the site of a major rail hub that connects the rebel-controlled DPR with Russia. "We have spoken to separatist commanders in recent weeks and they have said they are not interested in pushing for peace until they have taken the town," correspondents say. "There is a greater sense of confidence now among the separatists, whereas the general atmosphere among the Ukrainian troops is one of panic, especially on that main supply route." Separatist fighters from the DPR urged Ukrainian forces to surrender and leave the Debaltseve trap peacefully, said spokesman Eduard Basurin. "We guarantee security to all who lay down their arms. The others will be eliminated. If the enemy attempts to attack in another place, the strike will be repelled. Some 5,000 - 6,000 Ukrainian servicemen have been trapped in Debaltseve," Basurin said. Ukraine's military said no reports had confirmed the rebels' claims that the town was encircled. "Fighting is on to control the Artemnivsk-Debaltseve motorway, where a military confrontation continues," military operation spokesman Andriy Lysenko told Interfax on Monday evening. Ukrainian President Petro Poroshenko said on Tuesday that Russian-backed fighters had launched an artillery strike on the town of Kramatorsk, which is more than 50km (30 miles) away from the front line. Poroshenko said the first round of rocket fire hit the headquarters of the Ukrainian command in eastern Ukraine and the second landed in a residential area. The government-controlled Donetsk regional administration said seven people were killed, while 16 people were injured in the residential area and 10 more at the military headquarters.
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