MOSCOW, Russia - President Vladimir Putin has said a war with Ukraine was "unlikely" and if a military conflict between the two neighbours breaks out it would be "apocalyptic".

"I think that such an apocalyptic scenario is unlikely and I hope this will never happen," Putin said in an interview with Russian state television broadcast Monday.

The Russian president also stressed that the recent ceasefire deal signed in the Belarusian capital was the best way to stabilise eastern Ukraine where rebels, allegedly backed by the Russian army, have taken control of key areas after chasing away Ukraine troops.

He said that if the Minsk agreement signed Feb 12 was implemented, eastern Ukraine would "gradually stabilise".

"Europe is just as interested in that as Russia. No-one wants conflict on the edge of Europe, especially armed conflict," he said.

He said that the deal was backed by the United Nations Security Council and that matters to Moscow.

He also expressed view that if Ukraine devolves more power to eastern parts of the country, currently controlled by Russian-backed rebels, thing would return to normal.

He reiterated his denial that Russia was invading Ukraine and that Russian army was fighting alongside the rebels. He said Kiev was claiming that to hide its humiliation at being defeated by former miners and tractor drivers.

He said he was still in touch with his Ukrainian counterpart Petro Poroshenko, despite the accusations.

"We do keep in touch. But sometimes I am taken aback by public statements of the Ukrainian government, for instance that officers from my administration could have taken part in the tragic events that unfolded in Maidan (Kiev's central square) a year ago, which is pure nonsense," Putin said, appearing calm in the interview.

He was commenting on Poroshenko's allegation that Putin's aide Vladislav Surkov could have been behind the alleged sniper attacks on demonstrators last February as they rallied in Kiev's landmark Maidan square.

The interview as telecast on the day pro-Russian rebels celebrated their recent victory at Debaltseve. They organized a festive rally on Monday in Donetsk, the main city they control, where soldiers received medals in Lenin Square as the crowd cheered and waved Soviet flags.

"Thank you! Thank you!" the crowd chanted as the rebel soldiers marched into the square. A banner hanging behind the stage, next to a statue of Lenin, proclaimed that "the people's militia is the reliable defense of the republic."