Battle rages for town where Ukraine rebels reject ceasefire

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By Anton Zverev VUHLEHIRSK, Ukraine (Reuters) - Pro-Russian rebels pounded encircled Ukrainian government forces on Monday and Kiev said it would not pull back heavy guns while a truce was being violated, leaving a European-brokered peace deal on the verge of collapse a day after it took effect. The European Union announced a new list of Ukrainian separatists and Russians targeted with sanctions, to which Moscow promised an "adequate" response. Fighting had subsided in many parts of eastern Ukraine after a ceasefire came into force from Sunday, under a deal reached last week in marathon talks involving the leaders of France, Germany, Russia and Ukraine. Rebels announced hours after it came into effect that they had no intention of observing the ceasefire at the town of Debaltseve, where they have been advancing since January and now have a Ukrainian unit all-but encircled.




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