Ukraine's defence minister has said its forces have restored control of the border with Russia and can now prevent military equipment being brought across the frontier, as a second successive day of fighting continued in the east.

"Our forces have completed the encirclement of the problem region and restored the state border of Ukraine. Last week we fully closed off the possibility of any military equipment being brought in from the Russian Federation," acting Defence Minister Mykhailo Koval said.

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NATO Secretary-General Anders Fogh Rasmussen said on Thursday that at least a few thousand more Russian troops were now at the frontier, and called it a regrettable step backwards following an earlier withdrawal from the border.

Denying the report, President Vladimir Putin's foreign policy adviser, Yuri Ushakov told reporters.

"There has been no buildup."

Fighting between government forces and pro-Russian rebels raged again on Friday with reports of losses on both sides.

The spokesman for Kiev forces in the east, Vladislav Seleznyov, said 7 soldiers were killed and 30 injured in an overnight fight against separatists outside the village of Yampil.

He also said about 300 separatists had been killed in clashes around the villages of Yampil and Zakitne which included artillery fire and air attacks.

Kiev accuses Moscow of supporting the insurgents in its eastern region, and weapons are being brought from Russia to Ukraine, A report which Kremlin flatly denies

Heavy weapons including armoured personnel carrier, a shoulder-fire missile, grenade launchers and a truck with high-caliber machine gun.

Peace Deal or No Peace Deal

President Petro Poroshenko on Friday ordered a seven-day ceasefire separatists, or face death if they failed to lay down their weapons during the grace period.

But the fighting continues on Thursday and a fierce fight about 100km from the Russian border that caused some deaths in the Ukrainian side and heavy losses for the separatist had made the new elected president of Ukraine, President Petro Poroshenko backed his declaration to warning to the rebels.

TagsRussia, Ukraine, Ukraine crisis, Separatist movement