Russian President Vladimir Putin orders Russian forces to 'maintain peace' in eastern Ukraine's two breakaway regions

President Vladimir Putin has ordered his Defence Ministry to dispatch Russian forces to "maintain peace" in eastern Ukraine's two breakaway regions, the Donetsk and Luhansk People's Republics, after he said Moscow would recognise their independence.

The Kremlin decree, spelled out in an order signed by Mr Putin, did not specify the size of the force to be dispatched, when they would cross the border into Ukraine nor exactly what their mission would be.

Hours later, a Reuters reporter witnessed unusually large columns of military vehicles and hardware, including tanks, moving through Donetsk, the largest city of the self-proclaimed republic.

Mr Putin earlier signed decrees to recognise the two breakaway regions as independent statelets, defying Western warnings that such a step would be illegal and kill off long-running peace negotiations.

The recognition has been widely condemned by Western leaders as a violation of Ukraine's sovereignty and international law and has drawn US, UK and European vows of new sanctions.

A Reuters reporter saw about five tanks in a column on the edge of Donetsk and two more in another part of town.

They said no insignia were visible on the vehicles.

The developments up the ante in a crisis the West fears could unleash a major war.

Tensions between Moscow and Western capitals are high following weeks of United States accusations that Russia has deployed up to 150,000 troops near Ukraine's borders for an invasion.

Russia has denied it wants to invade Ukraine and accuses the West of hysteria.

Ukrainian President Volodymyr Zelenskyy, meanwhile, sought to project calm, telling the nation that Ukraine was "not afraid of anyone or anything".

"A country that has supported war for eight years cannot maintain peace," Mr Zelenskyy said about Russia, adding, however, that Kyiv would stick with its "peaceful and diplomatic" approach.

"We have been ready for everything for a long time. There is no reason for your sleepless night."

Mr Putin's announcement drew international condemnation and immediate US sanctions to halt US business activity in the breakaway regions and ban imports of all goods from those areas.

The measures were separate from sanctions the United States and its allies had prepared for if Russia launched a full-scale invasion of Ukraine, White House spokesperson Jen Psaki said.

A senior US official said the deployment to breakaway enclaves did not yet constitute a "further invasion" that would trigger the harshest sanctions as Russia already had forces there, but that a wider campaign could come at any time.

Britain, France and Germany also agreed to respond to Russia's recognition of the breakaway regions with sanctions, and the White House said it would announce further measures on Tuesday.

Agreement says Russia can build bases in eastern Ukraine

In his lengthy televised address, Mr Putin, looking visibly angry, described Ukraine as an integral part of Russia's history and said that the regions in eastern Ukraine were ancient Russian lands and that he was confident the Russian people would support his decision. 

Russian state television showed Mr Putin, joined by Russia-backed separatist leaders, signing a decree recognising the independence of the two Ukrainian breakaway regions, along with agreements on cooperation and friendship.

Under the two identical friendship treaties — submitted by Mr Putin for ratification by parliament — Russia has the right to build bases in the separatist regions and they, on paper, can do the same in Russia.

The parties committed to defend each other and signed separate agreements on military cooperation and on recognition of each other's borders.

Their 31-point treaties also say Russia and the breakaway statelets will work to integrate their economies. Both regions are former industrial areas in need of massive support to rebuild after eight years of war with Ukrainian government forces.

The 10-year treaties are automatically renewable for further five-year periods unless one of the parties gives notice to withdraw. 

Defying Western warnings against such a move, Mr Putin had announced his decision in phone calls to the leaders of Germany and France earlier, both of whom voiced disappointment, the Kremlin said.

Australia condemns Russian actions as 'unacceptable'

Prime Minister Scott Morrison said Australia condemned Russia's actions and would be in lock step with its allies on any sanctions.

Russia should unconditionally move its troops behind its own borders and stop threatening its neighbours, Mr Morrison said during a media briefing.

"It's unacceptable, it's unprovoked, it's unwarranted … some suggestion that they are peacekeeping is nonsense," Mr Morrison said.

Opposition leader Anthony Albanese said Labor supports democratic nations in their condemnation of Russian aggression, adding Russia should "back off". 

"We condemn Russia's unilateral recognition of breakaway territories in the Ukraine. We respect the sovereignty of Ukraine. Russia should do that too, in accordance with international law."

Moscow's action may well torpedo a last-minute bid for a summit with US President Joe Biden to prevent Russia from invading Ukraine. 

The White House said Mr Biden had signed an executive order to prohibit trade and investment between US individuals and the two breakaway regions.

Included is a prohibition of "new investment" by an American, wherever located, and the "importation into the United States, directly or indirectly, of any goods, services, or technology from the covered regions". 

It would "also provide authority to impose sanctions on any person determined to operate in those areas of Ukraine", White House spokesperson Jen Psaki said in a statement.

The White House said that, on a call with Ukraine President Volodymr Zelenskyy, Mr Biden had "strongly condemned Russian President Putin's decision to purportedly recognise the 'independence' of the so-called DNR and LNR regions of Ukraine".

EU will respond to 'illegal act' with sanctions against Moscow

According to another White House statement, Mr Biden had also discussed with France's Emmanuel Macron and Germany's Olaf Scholz "how they will continue to coordinate their response on next steps". 

In a joint statement, the President of the European Commission, Ursula von der Leyen, and the European Council President, Charles Michel, said the European Union would "react with sanctions against those involved in this illegal act".

British foreign minister Liz Truss said in a Twitter post that the government would announce new sanctions on Russia in response to Mr Putin's decision.

NATO Secretary-General Jens Stoltenberg accused Russia of continuing to fuel the conflict in eastern Ukraine and "trying to stage a pretext" for a further invasion. Russia annexed Crimea from Ukraine in 2014.

The United Nations Secretary-General António Guterres called out Mr Putin's decision to recognise the separatist regions as independent as "a violation of the territorial integrity and sovereignty of Ukraine" in a statement read by his spokesman, Stéphane Dujarric.

"The Secretary-General urges all relevant actors to focus their efforts on ensuring an immediate cessation of hostilities, protection of civilians and civilian infrastructure, preventing any action and statements that may further escalate the dangerous situation in and around Ukraine, and prioritising diplomacy to address all issues peacefully," Mr Dujarric said.

In his address, Mr Putin delved into history as far back as the Ottoman empire and as recent as the tensions over NATO's eastward expansion, a major irritant for Moscow in the present crisis.

With his decision to recognise the rebel regions, Mr Putin brushed off Western warnings that such a step would be illegal, would kill off peace negotiations and would trigger sanctions against Moscow.

"I deem it necessary to make a decision that should have been made a long time ago: to immediately recognise the independence and sovereignty of the Donetsk People's Republic and the Luhansk People's Republic," Mr Putin said.

Nicaraguan President Daniel Ortega became one of the first world leaders to back Russia's stance over Ukraine on Monday, saying Mr Putin was right to recognise two regions controlled by Moscow-backed separatists as independent.

The former Marxist guerrilla, who has led Nicaragua since 2007 after having first come to power in 1979, defended Mr Putin's move to recognise the independence of Donetsk and Luhansk.

"I am sure that if they do a referendum like the one carried out in Crimea, people will vote to annex the territories to Russia," Mr Ortega, a long-time opponent of US influence in Central America, said.

ABC/wires