NATO sources have confirmed the Russian military invasion of Ukraine after a column of 32 tanks entered the country from Russia.
The convoy made up of 32 tanks, 16 howitzer cannons and 30 trucks of troops and equipment crossed the border into the rebel-controlled Luhansk region.
"The deployment continues of military equipment and Russian mercenaries to the front lines," Ukraine's military spokesman Andriy Lysenko said in a televised briefing.
The news sparked panic in Russia's currency market, with the euro reaching the 60 ruble mark for the first time, in a year when it has lost more than a third of its value against the US dollar.
A truce had been signed between the Russians and Ukraine on 5 September, a sign of hope in the conflict, which has claimed more than 4,000 lives.
But that ceasefire has looked increasingly fragile over the past week, with each side accusing the other of breaching it and the pro-Russian side holding its own controversial election last Sunday.
On Thursday tensions were further heightened when five Ukrainian soldiers were killed and 16 injured in fighting.
Kremlin foreign policy advisor Yuri Ushakov said that Russia was committed to the two-month-old Minsk agreement on ceasefire in eastern Ukraine and wanted to build on peace talks.
Russian president Vladimir Putin is due to meet with a number of world leaders next week, including UK Prime Minister David Cameron and French President Francois Hollande, Mr Ushakov said.
He will also meet with International Monetary Fund chief Christine Lagarde during an Asia-Pacific summit in Beijing on 10 and 11 November.
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