U.S. Vice President Joseph Biden on Monday warned Russia of more costs over what he called Moscow's continuing violation of a ceasefire deal over eastern Ukraine.

Ukraine President Petro Poroshenko, in his phone talks with Biden, informed the veep about "Russia's blatant escalation of the situation in eastern Ukraine, including increased shelling of Ukrainian government positions and the transfer of additional heavy weapons to the separatists," the White House said in a statement.

Biden said that "if Russia continued to wilfully violate the terms of the Minsk agreement, the costs to Russia will increase," the White House said.

The deal, inked between Ukraine's government and the insurgents on Sept. 5 in the Belarussian capital city of Minsk, was aimed at de-escalating the tension in eastern Ukraine and facilitating the release of hundreds of prisoners-of-war.

Russia has rejected the allegation that it is aiding the rebels militarily in the conflict.

At least two government soldiers have been killed and five others wounded in fighting with independence-seeking insurgents over the past 24 hours in Ukraine's east.

The tension, which escalated sharply since Ukrainian authorities decided to repeal the law which grants "special status" to rebels-held Donetsk and Lugansk regions six days ago, has raised fear about a disruption of the prisoners-of-war swap.

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