Vladimir Putin's spokesman says that he believes eastern Ukraine should remain part of the country.

Dmitry Peskov claims the conflict between pro-Moscow groups and Ukrainian government forces is a domestic one.

The statement comes after Mr Putin urged the Kiev government and Ukrainian rebels to enter talks concerning the 'political organisation and statehood' of the eastern part of country, where there has now been months of conflict.

Meanwhile, the Russian President has said he can't stand aside while people are being shot in the region, following an EU warning of fresh sanctions.

EU leaders met yesterday at a summit in Brussels, where they also ruled out military action in the country.

The Taoiseach Enda Kenny was among the leaders attending the meeting, and said sanctions against Moscow are intended to hurt 'Mega Wealthy Russians'.

The leaders say plans for tougher measures against Moscow will be drawn up within a week.

Ukrainian President Petro Poroshenko, meanwhile, said tanks had been used to "destroy virtually every house" in the town of Novosvitlivka. 

He told a news conference in Brussels that there were now thousands of foreign troops and hundreds of foreign tanks inside Ukraine - the latest claim of direct Russian involvement in the conflict that is estimated to have claimed the lives of more than 2,500 people.