Ukraine, rebels exchange prisoners in peace deal

Government and rebel forces on Friday exchanged dozens of prisoners captured during fighting in Ukraine, as part of a cease-fire agreement sealed earlier this month.

The transfer took place in the early morning hours outside the main rebel stronghold of Donetsk under the watch of international observers.

Thirty-six Ukrainian servicemen were released after negotiations and a further 21 soldiers were freed the day before, Ukrainian President Petro Poroshenko said.

Ukrainian forces handed over 31 pro-Russian rebels detained over the course of the five-month conflict.

A cease-fire between separatists and the Ukrainian military took effect last Friday but has already been serially violated. Shortly after the prisoner exchange, a volley of rocket fire was heard from central Donetsk.

The group of Ukrainian servicemen was driven away from the local security services headquarters around 1:30 a.m. local time and taken to a location several miles north of the city. At the spot, they were met by Ukrainian military officials, some of whom were armed.

The two sets of captives were brought out wearing handcuffs, which were removed as they were handed over. Prisoners were split up into small groups for the exchange.

One representative from each side checked people being freed against a list and crossed out names as they were being released.

Hundreds of prisoners are believed to be held by both sides, although no firm figure has been provided by either.

"There is an ongoing process of talks. We are meeting each other's demands and fulfilling our promises," said Yuriy Tandit, who is serving as a negotiator for the government.

Some of those in the separatists ranks being released were Russian citizens.

One Russian, Simon Veridya from Moscow, said he was captured in the town of Kramatorsk, which was retaken by government forces in July.

"They shot at our ambulance. There were five of us, including two women. We were taken to custody in Kramatorsk at the antiterrorist operation base at the airport," Veridya said. "I was beaten and have two broken ribs."

The conflict between pro-Russian rebels and the Ukrainian government has been raging for five months, claiming more than 3,000 lives, according to the United Nations.

Ukraine and the West have accused Russia of propping up the insurgency in eastern Ukraine with recruits and weapons. Moscow has admitted that there were Russian volunteers fighting across the border but flatly denied sending them weapons or troops.

In Brussels, the European Union imposed a new round of sanctions on Russia for its actions in Ukraine, virtually shutting down long-term lending for several Russian weapons manufacturers as well as three energy companies including Rosneft, the country's largest oil producer. EU entities and individuals will now be barred from providing lending for more than 30 days.

The Associated Press