Putin orders Russians to fight on after key Ukraine city falls

President Vladimir Putin on Monday ordered Russian troops to press their offensive deeper into the Donbas region of eastern Ukraine after Moscow's forces seized the strategic city of Lysychansk.

Russian Defence Minister Sergei Shoigu told Putin at a meeting that Moscow's forces were now in full control of the Lugansk region.

In a sign there would be no let-up in the fighting and that Russia now had its eyes on the entire Donetsk region, Putin told Shoigu that troops stationed there must continue their operations.

"Military units, including the East group and the West group, must carry out their tasks according to previously approved plans," Putin said.

"I hope that everything will continue in their direction as has happened in Lugansk so far."

The Ukrainian army said on Sunday it was retreating from Lysychansk to preserve the lives of its troops who were outnumbered and outgunned by Russian forces.

"The enemy continues to terrorise the border areas of the Sumy region, the city of Kharkiv and the (Donbas) region," Ukrainian President Volodymyr Zelensky said in his nightly address, describing Russia's intensifying offensive.

"We need to break them. This is a difficult task, it requires time and superhuman efforts. But we have no alternative."

With the war now well into its fifth month, Ukraine told a reconstruction conference in Switzerland on Monday that it would already cost $750 billion to rebuild the country.

"The key source of recovery should be the confiscated assets of Russia and Russian oligarchs," Prime Minister Denys Shmyhal told leaders of dozens of countries in Lugano.

In a video address, Zelensky described rebuilding Ukraine as the "common task of the whole democratic world" and the ...