Ukraine's rebels disavowed a new truce on Sunday hours after it took effect, saying it did not apply to the town where most fighting has taken place in recent weeks.

Guns fell abruptly silent at midnight across much of eastern Ukraine in line with the cease-fire agreement, reached after a week of diplomacy led by France and Germany. But pro-Russian rebels announced they would not observe the truce at Debaltseve, where Ukraine Army forces were encircled.

"Of course we can open fire (on Debaltseve). It is our territory," senior rebel commander Eduard Basurin said. "The territory is internal: ours. And internal is internal. But along the line of confrontation there is no shooting."