Story highlights Ukraine military reports first violation of the ceasefire, saying motar fire hit a post near Zolote Ukraine's president warns separatists about Debaltseve, a stategically located railroad hub President Petro Poroshenko declares ceasefire is in effect
The separatist Donetsk People's Republic also announced the ceasefire.
But an apparent violation was reported less than 90 minutes after the ceasefire began when Ukraine's Anti-Terrorist Operation Command reported that a military post near Zolote in the Luhansk region has been shelled by mortars.
As a positive sign, CNN reporters in Ukraine reported the shelling quieted shortly after midnight.
The peace agreement signed in Minsk, Belarus, several days ago comes with many questions over how it will be implemented and whether it will stick. Mistrust is high on both sides, adding to the doubts.
The town of Debaltseve, a strategically located railroad hub in the east, is shaping up as a crucial piece of the ceasefire.
In his speech announcing the ceasefire, Poroshenko said Ukrainian troops control the town and warned militants to stay away.
"I think the fact of using the tense situation on the outskirts of Debaltseve by militants-terrorists-mercenaries poses a great threat, which can violate the ceasefire regime," Poroshenko said. "I am warning all participants of the Minsk negotiations, including the Russian Federation, which identifies itself as the guarantor of the reached agreements."
CNN's Nick Paton Walsh, reporting from the eastern town of Donetsk, said separatists claim to have encircled Debaltseve.
"Debaltseve will be a vital flashpoint for the hours ahead," he said.
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Shelling in Ukraine cities ahead of midnight ceasefire ...