Berlin: Showing no signs of backing down in its confrontation with the West, Russia has launched new military exercises near its border with Ukraine as the interim government in Kiev announced plans to raise 60,000 volunteers for a new National Guard force.

In Berlin, German Chancellor Angela Merkel gave a stark and emotional speech to her parliament warning of "massive damage" unless Russia changes course, while in eastern Ukraine a man died in fighting between rival protesters in the mainly Russian-speaking city of Donetsk.

Pro-Ukrainian protesters are hit by eggs thrown by pro-Russian protesters in Donetsk, eastern Ukraine. A man died in the clashes on Thursday. Credit:AP

Dr Merkel removed any suspicion that she might try to avoid a confrontation with Russian President Vladimir Putin.

"Ladies and gentlemen, if Russia continues on its course of the past weeks, it will not only be a catastrophe for Ukraine," she said. "We, also as neighbours of Russia, would not only see it as a threat. And it would not only change the European Union's relationship with Russia. No, this would also cause massive damage to Russia, economically and politically."