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(CNN)Ukraine's military said Wednesday that 80% of Ukrainian armed forces have now pulled out of a strategic railroad hub that's been the focus of bitter fighting with pro-Russian separatists. The two sides have been battling for weeks for control of Debaltseve, and continued conflict there has undermined a truce that apparently went into effect Sunday, raising concerns it is all but dead. The ramifications for the West are huge because the 10-month-long conflict in eastern Ukraine has hiked tensions with Russia to a level not seen since the end of the Cold War, affecting trade and raising the specter of Russian expansion into Eastern Europe.

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Debaltseve was under our control, there was no encirclement, and our troops left the area in a planned and organized manner with all the heavy weaponry," he said, according to his office.