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Pro-Ukrainian forces fell back to the village of Bezimenne on Tuesday evening, 10 kilometres (6.2 miles) from their previous positions.
Local residents stood on the road as more forces arrived from the direction of Novoazovsk, a town on the Azov Sea that has seen fighting in the last two days.
"Oh God, I don't want bloodshed, I don't want anything to happen," said Tatiyana Hololobova, who was on her way to meet her son in Novoazovsk when she became stranded in Bezimenne.
Shelling could be heard in the distance as residents were encouraged back to their homes to take refuge.
Earlier on Tuesday towering columns of smoke were seen rising near the border town of Novoazovsk, 35 kilometres (21.7 miles) from the industrial city of Mariupol in southeastern Donetsk.
Local residents in Novoazovsk, some hastily packing up in order to flee, said it was not clear what direction the firing had come from on Tuesday.
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