A pro-Russian rebel at a checkpoint following shelling in Donetsk, eastern Ukraine, on Tuesday. Photograph: Reuters/Marko Djurica

Nato has observed a significant withdrawal of Russian forces from inside Ukraine, but many Russian troops remain stationed nearby, an alliance military spokesman said on Wednesday.

There has been a significant pull back of Russian conventional forces from inside Ukraine, but many thousands are still deployed in the vicinity of the border, Lieut Col Jay Janzen said in an emailed response to a request for comment.

Some Russian troops remain inside Ukraine. It is difficult to determine the number, as pro-Russian separatists control several border crossings and troops are routinely moving back and forth across the border. Further, Russian special forces are operating in Ukraine, and they are difficult to detect, he said.

As recently as a week ago, Nato said it believed Russia still had about 1,000 soldiers inside Ukraine despite some cuts in troop numbers since a ceasefire began on September 5th. Lieut Col Janzen said there appeared to be a reduction in incidents, including artillery fire, between Ukrainian forces and Russian-backed separatists.

Nato welcomes these positive signs, and encourages all parties to continue to work towards a peaceful solution to this crisis, he said.

Meanwhile, the ceasefire between the separatists and government forces in the east of the country was breached as mortar fire struck an apartment block in the rebel-held city of Donetsk. Both sides said there was progress on the ground in fulfilling an agreement to pull back heavy artillery weapons from the front line, but today Kiev accused the rebels of violating the ceasefire.

Col Lysenko also said eight servicemen had been wounded in fighting overnight. A residential building in the north of Donetsk was heavily damaged by shelling, destroying at least two apartments.

While RIA Novosti news agency quoted the rebels as saying two people died in the attack, nobody at the scene could confirm any civilian casualties. That part of the city has been the subject of almost daily shelling despite the ceasefire, as fighting centred around the government-held city airport nearby has caught residential neighbourhoods in the crossfire. (Reuters/PA)

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Nato sees significant withdrawal of Russian troops from Ukraine