Ukrainian forces have been ordered to withdraw from Severodonetsk, according to the top regional official.
The eastern city has endured weeks of bombardment, as Russian forces try to take complete control of the region.
A Ukrainian retreat would be significant because it would leave all of Luhansk under Russian control, except for the city of Lysychansk.
Luhansk, a mainly Russian-speaking region in east Ukraine, is a key priority for President Vladimir Putin.
Together with the Donetsk region it makes up what is collectively known as the Donbas - a large, industrial area which has been the focus of a Russian-backed separatist movement since 2014.
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