Armed separatists in the eastern Ukrainian city of Slaviansk seized a bus carrying international observers from the Organization for Security and Cooperation in Europe on Friday, Ukraine's Interior Ministry said.

The separatist leader in Slaviansk told reporters a problem has arisen when the observers tried to pass a separatist checkpoint, and that there was an Ukrainian "spy" among the group. But he did not say where they were.

The interior ministry in Kiev said the group, which included 7 OSCE representatives and five members of the Ukrainian armed forces, was being held in the building of the state security agency (SBU) in the city which has been occupied by pro-Russian separatists.