Ukrainian forces encircle rebel-held city, talk of truce collapses

A Ukrainian military convoy moves along a road near Donetsk August 9, 2014. REUTERS/Valentyn Ogirenko

KIEV/DONETSK Ukraine (Reuters) - Artillery shells slammed into the outskirts of the Ukrainian city of Donetsk on Sunday as government forces tightened the noose around the rebel-held redoubt and called on pro-Russian separatists to surrender.

To the east of Donetsk, government forces and the separatists were fighting for control of the town of Krasny Luch, a rail and road junction through which Kiev says the rebels are receiving supplies of Russian military equipment.