Ukraine signals strategic shift to de facto war with Moscow

Petro Poroshenko, Ukraine's president, on Monday accused Moscow of conducting "direct and undisguised aggression" against the country, turning the military tide against Ukrainian forces battling to dislodge pro-Russian separatists.

His warning came as Ukraine's army abandoned its defence of Lugansk airport against what it said was a Russian tank battalion in the east of the country, in the latest in a series of military reversals for Kiev.

Signalling an important shift in strategy, Valeriy Heletey, Ukraine's defence minister, also announced that the country's "operation to liberate [eastern Ukraine] from militants is over, Ukraine must defend itself against Russia".

In Berlin, German chancellor Angela Merkel reinforced his statement, saying the fighting in eastern Ukraine was not an internal affair but a "conflict between Ukraine and Russia".

Losing Lugansk airport represents a particular setback for Ukraine's forces, just weeks after pro-Kiev troops had seemed poised to retake both Lugansk and the rebels' other eastern stronghold, Donetsk.

It reflects a wider change in their fortunes amid growing evidence that Russian regular soldiers and heavy weaponry are operating within Ukraine, as Vladimir Putin, Russia's president, has appeared to increase its support for the eastern rebels.

Separatists reportedly backed by Russian forces last week opened a new front in Ukraine's southeast, seizing Novoazovsk on the Sea of Azov coast. The move put them within striking distance of the larger port and steelmaking city of Mariupol, which has been used by pro-Kiev forces as a regional military logistical base.

The latest rebel advances came as separatist leaders held talks with Ukrainian representatives in Minsk, Belarus, where Russian news agencies reported them as saying they were prepared to remain part of Ukraine if they were granted "special status".

The rebels' progress has left Kiev struggling to respond, with signs of divisions in the leadership. Mr Poroshenko, under political pressure not to give ground to the rebels, hinted on Monday that he might implement a reshuffle at the top of Ukraine's defence agencies.

One defence official said retaking Donetsk and Lugansk were no longer the overriding goals, as the conflict had become a de facto war with Russian forces.

Alongside the withdrawal from Lugansk airport, there were clear signs that Ukrainian forces had also lost strategic territory around Donetsk in recent days.

They have largely vanished from the highway from Mariupol to Donetsk, leaving rebels in civilian cars aggressively patrolling the northern section of the road. Describing Americans as "enemies" and western journalists as "liars", gun-toting rebels also claimed to have pushed Ukrainian troops and tanks out of Olenivka, a village 15km south of Donetsk. A Ukrainian checkpoint there has vanished.

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"We don't know who is in charge now but without weapons what can we do? We're not capable of fighting against soldiers armed with machine guns and tanks," one said. "All we can do is try our best to prevent looting and chaos."

Though a Ukrainian flag still flew over the city administration, officials could not be found. Well-armed fighters - it was unclear from which side - were positioned at the entrance to the town, pointing sniper rifles and machine guns towards Mariupol.

Sitting on a park bench in Volnovakha, two teenage girls who returned to school on Monday after the summer break said they were uncertain how long classes would continue.

"We're scared, we heard the bombing overnight from Olenivka," said Valeria, 15. "We support Ukraine and fear the rebels will bring war and destruction to our city."

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