AKIPRESS.COM - Pro-Russian rebels in Ukraine say they have encircled the town of Debaltseve - but Ukraine says its troops are still fighting along a supply road, reports BBC.

Earlier, US President Barack Obama said he had not ruled out supplying lethal defensive arms to Ukraine if diplomacy failed to end the crisis. Russia had violated "every commitment" in a truce deal, he said, after meeting German Chancellor Angela Merkel.

Mr Obama is under pressure from senior US officials to supply arms to Ukraine. However, Ms Merkel objects to this. Ms Merkel and Mr Obama have been holding talks on a new peace deal for the conflict in Ukraine's east.

Russia has denied accusations of sending troops and supplies to re-enforce the rebels battling Ukrainian forces.

The rebels said on Monday that they had cut off a key supply road to Debaltseve, a strategic railway junction, which is near the rebel-held city of Donetsk. However, Ukraine's military told the BBC that the battle was continuing. 

Military spokesman Olexandr Matuzyanyk told the BBC "there is fighting going on for this road at the moment".

Thousands of Ukrainian troops are believed to be in Debaltseve and the nearby area. Heavy fighting has been raging there for more than a week, with the rebels gaining some ground.

Ukrainian government officials say nine soldiers and at least seven civilians have been killed in fighting over the last 24 hours.

The crisis in Ukraine has already claimed more than 5,300 lives and displaced 1.5 million people from their homes.