Pro-Russia separatists show withdrawal from east Ukraine under ceasfire deal

(Reuters) – Pro-Russia separatists brought reporters on Tuesday to witness the withdrawal of heavy weapons from the front line in east Ukraine under a ceasefire deal, but Ukraine said the rebels were using the cover of the truce to reinforce for another advance.

Fighting has eased in eastern Ukraine in recent days, raising hope that a ceasefire due to start on Feb. 15 can finally take effect after the rebels initially ignored it to storm a government-held town last week.

The prospect that the ceasefire will fail has fueled a rout in the Ukrainian hryvnia, which plunged 11 percent to close at 31.63 to the dollar. The currency has already lost half its value since the start of this year after halving during the whole of 2014. Dollar bonds issued by Ukrainian companies sold off heavily after authorities tightened currency controls.

A feud over natural gas, which appeared to have been settled for the winter by an agreement late last year, has also resurfaced, with Moscow threatening to cut off Kiev’s supplies in two days unless Kiev paid more money.

Since taking the railway hub of Debaltseve in one of the worst defeats for Kiev of the war, the Moscow-backed rebels have indicated they now want to abide by the truce. Kiev says the rebels are still shooting, which the rebels deny.

Reuters journalists in rebel-held territory watched 10 trucks carrying howitzers roll through Makiyvka, near rebel-held Donetsk. Rebels said the guns were on their way from Donetsk toward Amvrosiyvka, a town far from the front and close to the Russian frontier.

Near Amvrosiyvka, Reuters journalists saw a second convoy carrying 14 howitzers, also heading toward the Russian border.

Rebel commander Eduard Basurin said 90 pieces of artillery would be withdrawn on Tuesday, and different of weapons would be pulled out on different days until all artillery was deployed away from the front in line with the peace deal.

There were no plans for any further military advances, he added: “That’s it. We are going no further.”

He said the rebels still aim to gain control of the entire territory two rebellious provinces, including the government-held port of Mariupol, but would seek this through “negotiations with the Ukrainian side”.

The Kiev military said rebel assertions they were pulling back guns were “empty words”.

“On the contrary, the terrorist groups, making use of the ceasefire period, are reinforcing their units and building up ammunition.”