Situation in the conflict area in southeastern Ukraine is better now, thanks to the agreements reached during the recent negotiations in Belarusian capital Minsk, a Kremlin official said Monday.

"In general, the situation is developing well, especially if you compare what is going on now with what used to be ...," presidential aide Yuri Ushakov told reporters.

He further noted that the situation around the Ukrainian town of Debaltsevo has shown signs of positive development, as some 8,000 Ukrainian troops have been encircled there by the insurgents' militia.

Russia hopes all provisions of the Minsk peace agreements would be fulfilled, especially the withdrawal of all weapons and the creation of a security zone, Ushakov said.

Participants of the "Normandy Four", comprising the leaders of Russia, Germany, France and Ukraine, remained in intensive contact but have no plan to meet face-to-face soon, the Kremlin aide said.

"New phone talks are being organized via diplomatic channels and could take place tonight or in the next few days," Interfax news agency quoted Ushakov as saying.

The latest quartet phone conversation took place on Sunday, demanding a strict observance of the latest cease-fire Minsk agreement.

Moreover, Ushakov said that the "illegal" sanctions newly adopted by the EU will not only prevent the settlement of the Ukraine crisis, but also hamper the development of comprehensive relationship between Russia and the EU.

The ceasefire in Ukraine between government troops and the insurgents started from midnight Sunday (2200 GMT Saturday), with both sides reporting the truce had been generally observed and no major incidents taking place.