Ukraine pilot killed in Sloviansk military operation
Ukrainian
government forces have launched an "anti-terror" operation against
pro-Russian rebels in the eastern city of Sloviansk.
However, separatists at three Sloviansk checkpoints told the BBC they were still in control there.
Gunmen have shot down at least two army helicopters, capturing one pilot.
The fighting appears to be concentrating on the periphery of the city, says the BBC's Sarah Rainsford in the regional capital Donetsk.
Sloviansk is a stronghold for pro-Russian separatists who are exerting increasing control in the region.
On Thursday, Russia's foreign ministry warned that any assaults by Ukraine's troops in the region would have "catastrophic consequences", triggering fears of an invasion by Moscow.
'Professional mercenaries'
In a statement on Friday , Mr Avakov said the "active phase" of the operation began at 04:30 local time (02:30 GMT).
He said interior troops and the National Guard were involved in the operation in the Sloviansk-Kramatorsk region.
"The terrorists opened fire with heavy weapons against Ukrainian special units.
"A real battle with professional mercenaries is going on," Mr Avakov said, adding that the separatists were using the tactics of hiding behind civilians in residential buildings.
Russia's state-run Rossiya 24 TV channel said the city was being "stormed".
It quoted Sloviansk's rebel leader Igor Strelkov as saying that the city was completely sealed off.
However, there were no reports of Ukrainian government troops entering the city itself.
Local residents were later quoted as saying that the situation in the city calmed down but remained tense.
Earlier, Ukraine's acting President Olexandr Turchynov reinstated military conscription.
Mr Turchynov said his forces were "helpless" to quell the unrest in some parts of the east, saying the goal was now to prevent it from spreading.
He also said Ukraine was on "full combat alert" amid fears that Russian troops could invade.
Some 40,000 Russian troops are stationed near the Ukrainian border.
Monitors held
Eastern Ukraine has a large Russian-speaking population and was a stronghold for President Viktor Yanukovych before he was overthrown by pro-Western protesters in February.
The crisis has plunged East-West relations to their lowest point since the Cold War ended in the early 1990s.
On Thursday, German Chancellor Angela Merkel asked Russia in a phone call to President Vladimir Putin to help free foreign monitors held in eastern Ukraine.
The military observers were seized by pro-Russia separatists at a checkpoint in the flashpoint town of Sloviansk last Friday.
For his part, Mr Putin reiterated his call for Kiev to withdraw troops from the south-east to open the way for a national dialogue.
Mrs Merkel is due to meet US President Barack Obama in Washington on Friday to discuss the crisis in Ukraine.
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