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Ukraine is proposing to introduce a state of 'martial law' as it edges closer to all-out war with Russia.

Its National Security and Defence Council (NSDC) met at midnight local time (10pm UK time) to discuss events in the Black Sea this afternoon - when Russian warships fired on Ukrainian Navy boats and seized three of their vessels.

A senior Ukraine official has subsequently claimed Russia's actions were an "act of war".

Ukraine President Petro Poroshenko said after the meeting tonight that he will propose Parliament declare martial law tomorrow (Monday).

Parliament will then decide whether to approve martial law.

It was reported by Reuters a state of martial law will both restrict civil liberties in the country and give state institutions greater power.

Following an emergency meeting earlier, the current Secretary of the National Security and Defence Council (NSDC) of Ukraine, Oleksandr Turchynov, said: "We are convening the Ukrainian NSDC to declare a state of war”.

(Image: REUTERS)

He added that Russian actions near Crimea today were "an act of war".

However at the meeting the introduction of a state of martial law was discussed.

Mr Poroshenko has already said he supports the introduction.

Russia earlier said it acted against the Ukranian ships after they ignored "legitimate" demands to stop and "manoeuvered dangerously".

(Image: Twitter) (Image: TASS)

Unconfirmed reports allege a number of Ukrainian sailors were captured - possibly as many as 23.

Following the brutal sea showdown, the Ukrainian Ambassador said: "The boats have been damaged and lost ability to move.

"The 'Yany Kapu' lost ability to move following Russian assault. Two Ukrainian crew members have been wounded.

"Russian special forces have captured all the three Ukrainian ships.

(Image: REUTERS)

"All illegal actions have been recorded by the crews of the ships and the command of Ukraine's Navy and reports will be handed over to the respective international agencies."

The day's incidents began in the Black Sea when Russia rammed a tugboat.

Its Special Forces also stopped three Ukrainian navy vessels from entering the Sea of Azov via the Kerch Strait.

(Image: REUTERS) (Image: REUTERS)

It placed a huge cargo ship beneath a Russian-controlled bridge.

Transit under the bridge was therefore blocked by the tanker ship and dozens of cargo ships awaiting passage are still stuck.

But, as National Security and Defence Council (NSDC)'s convened for the crunch meeting tonight, protesters rallied in front of the Russian embassy in Kiev.

(Image: REUTERS)

Shocking photographs show them hurling fireballs and tyres.

Others placed paper boats on walls during the violent protests.

They were put in front of the Russian embassy in Kiev.