Germany says peace plan for Ukraine 'damaged' not dead

Russian President Vladimir Putin shakes hands with Hungarian Prime Minister Viktor Orban (R) after a joint news conference in Budapest February 17, 2015. REUTERS/Laszlo Balogh

BERLIN (Reuters) - Germany condemned the seizure of a strategic east Ukrainian town by pro-Russian rebels on Wednesday as a "massive violation" of a ceasefire, but said it was too early to call the broader Minsk peace plan dead or ratchet up sanctions against Moscow.

The withdrawal of Ukrainian troops from the encircled town of Debaltseve on Wednesday was a blow to German Chancellor Angela Merkel's efforts to clinch a negotiated solution to the year-long conflict that has claimed thousands of lives.