Moscow (Alliance News) - Acknowledging that the situation in Ukraine was degrading, Russian President Vladimir Putin and German Chancellor Angela Merkel called for a dialogue between the government in Kiev and pro-Russian separatists.

The two leaders met in Rio de Janeiro before the World Cup final. Russia will host the next World Cup in 2018.

They "noted the necessity of the soonest possible resumption of work of the contact group (on Ukraine), possibly in the format of a video conference," said Putin's spokesman Dmitry Peskov and Merkel's spokesman Steffen Seibert.

Putin said it was unacceptable that shells from the Ukrainian military have landed on Russian soil.

His comments came after fighting left dozens dead in the restive Donetsk region of Ukraine and claimed the first fatality on Russian territory.

The Ukrainian air force mounted new attacks against pro-Russian separatist positions at the weekend, killing dozens of insurgents, the Defence Ministry in Kiev said.

The ministry said 40 militants were killed during two of five targeted airstrikes. The three other strikes reportedly claimed no casualties.

A 45-year-old man was killed when ammunition struck his home in the neighbouring Rostov region of Russia, said Vladimir Markin, a spokesman for Russia's Investigative Committee. Another woman was also reportedly injured by the force of the blast.

The death sparked criticism from Russian Deputy Foreign Minister Grigory Karasin, who told state television Rossiya 24 that the border violation demanded a reaction.

Escalating violence, he said, is a "danger to our citizens even on our territory. It's clear that this will not remain without a response."

The Russian Foreign Ministry also sent a formal note to the Ukrainian embassy protesting what it called an "act of aggression." It said that repeated acts of shelling on the border would have consequences, and reiterated concern for the safety of its citizens.

Bloodshed has been centered around the Donetsk region. According to the city council, 12 people were killed and several injured during fighting on Saturday. In Maryinka, where separatists announced 30 civilian deaths, the city council confirmed six fatalities.

While Western leaders hope that Putin could influence the pro-Russian separatists and convince them to lay down their weapons, peace talks and attempts at a ceasefire have thus far failed to produce tangible results.

Fighting in Ukraine has been ongoing since mid-April. The government in Kiev does not recognize the declared independence of the Donetsk and Luhansk regions, and pro-Russian militants refuse to cooperate with the pro-European leadership in Kiev.

Copyright dpa