UKRAINIAN President Petro Poroshenko declared a week-long ceasefire today, shortly after he revealed details of his “peace plan” following a night of continued fighting between Kiev forces and pro-Russian rebels.

Mr Poroshenko had spoken to Russian President Vladimir Putin for the second time in days, seeking his approval for the plan.

However, there was no let-up in hostilities, with the Ukraine government admitting the loss of seven soldiers and another 30 injured in clashes outside the village of Yampil in the Donetsk region.

Spokesman Vladislav Seleznev claimed implausibly that 300 rebels had been killed in return.

Heavy government artillery fire in the city of Sloviansk led to the deaths of four civilians, including a boy of five.

Pro-Russian fighters were also observed moving in a column with two tanks and three armoured personnel carriers near the town of Yanakiyeve in the direction of the town of Horlikva in the Donetsk region.

President Poroshenko’s plan promises to decentralise power and calls for immediate disarmament in eastern Ukraine.

It also proposes to create a 10km (6 miles) buffer zone on the Ukrainian-Russian border and early local and parliamentary elections.

Mr Poroshenko had previously hinted at a unilateral ceasefire by government forces before a peace plan being implemented.

He suggested earlier this week that a brief truce would allow pro-Russian units in Donetsk and the neighbouring Luhansk region to lay down their arms.

The Ukrainian president announced on Thursday evening that he will sign a controversial EU association agreement on June 27.