Russia Wants World War Three, Says Ukraine

Ukrainian Prime Minister Arseniy Yatsenyuk has accused Russia of wanting to start "a third world war".

Mr Yatseniuk said that Russia wanted to occupy Ukraine "militarily and politically", creating a conflict that would spread to the rest of Europe.

A pro-Russian separatist fills sand bags at a checkpoint in Slavyansk

"The world has not yet forgotten World War Two, but Russia already wants to start World War Three," he said.

His comments came as Barack Obama said he would consult key European leaders later on the possibility of imposing new sanctions against Russia.

On the ground, Ukrainian special forces launched a second phase of their "anti-terrorism" operation, blockading the rebel-held city of Slavyansk, officials said.

Reports that pro-Russian snipers had shot at a Ukranian military helicopter in the eastern town of Kramatorsk have been treated cautiously. 

Barack Obama will consult European leaders about new sanctions

According to officials in Kiev, the helicopter exploded at a military base after being hit by a rocket-propelled grenade.

Its pilot managed to escape but was wounded, the official said. Kramatorsk is one of several under the control of pro-Kremlin gunmen.

Sky's foreign affairs editor, Sam Kiley, in Ukraine, said that the "bellicose" rhetoric between Russia and Ukraine was escalating more quickly than action on the ground.

"On the ground, there are incidents, but the level of violence has been relatively low and does not justify the type of rhetoric we have heard," Kiley said. 

Journalist Simon Ostrovsky has spoken of his capture

Meanwhile, US journalist Simon Ostrovsky, who was captured and released by pro-Russian militants, says he believes he was used as a "bargaining chip" with Kiev.

Writing for Vice magazine, he said: "On Monday night I was pulled out of a car at a checkpoint, then blindfolded, beaten, and tied up with tape.

"After spending hours alone on the floor of a damp cell with my hands tied behind my back and a hat pulled over my eyes, I was led into a room where I was accused of working for the CIA, FBI, and Right Sector, the Ukrainian ultra-nationalist group."

Earlier, US Secretary of State John Kerry accused Russia of "deception" and "destabilisation" in Ukraine and hinted at more sanctions.

John Kerry has warned Russia of 'grave' consequences

Mr Kerry warned Moscow time was running out for it to change course.

"Russian President Vladimir Putin and Russia face a choice," he said in unusually blunt language.

"If Russia chooses the path of de-escalation ... all of us will welcome it. But if Russia does not, the world will make sure that the costs for Russia will only grow."

Mr Kerry added this would be a "grave" and "expensive mistake".

He also said the Kremlin has not honoured an agreement aimed at defusing the crisis, echoing earlier comments by Mr Obama.

A checkpoint apparently set on fire by pro-Russian separatists

The Geneva accord between Russia, Ukraine, the US and EU compelled armed groups to put down their weapons and vacate official buildings.

The US says Moscow is stoking unrest and separatist sentiment in the east of Ukraine after its annexation of Crimea.

Russia accuses Washington of encouraging a pro-Western government to adopt anti-Russian policies.

UN chief Ban Ki-moon has warned the crisis is threatening to "spin out of control" and urged all sides to "refrain from violence".

A pro-Russian actvist has his head bandaged

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