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 But all four leaders said there was a long way to go and
accusations from Kiev of a new, mass influx of Russian armour into
rebel-held eastern Ukraine further undermined the prospects for
peace.
The deal envisages a ceasefire between Ukrainian forces and
Russian-backed separatists starting on Sunday, followed by the
withdrawal of heavy weapons from the front line and constitutional
reform to give eastern Ukraine more autonomy.
"The main thing which has been achieved is that from Saturday into
Sunday there should be declared, without any conditions at all, a
general ceasefire," a visibly downbeat Ukrainian President Petro
Poroshenko told journalists.
Emerging separately from more than 16 hours of negotiations, German
Chancellor Angela Merkel, one of the sponsors of the talks, differed
with Russian President Vladimir Putin over the reasons they took so
long.
Putin accused Kiev of prolonging the talks, the culmination of a
dramatic diplomatic initiative by France and Germany following an
upsurge in fighting in which the separatists tore through an earlier
ceasefire line.
Merkel on the other hand, said Poroshenko "did everything to achieve
the possibility of an end to the bloodshed", while she said Putin
put pressure on the separatists to agree to the ceasefire "towards
the end" of the talks.
 The deal offered a "glimmer of hope" she said, but big obstacles
remained in the way of peace.
It is likely to ease pressure in the United States for Washington to
send military aid to the stretched Ukrainian army, and from some in
Europe for tighter sanctions against Moscow, due to be discussed at
a European summit later on Thursday.
The agreement could also help protect Putin from any fallout from
the deaths of Russians in the fighting, said by Ukraine to be
soldiers. Moscow says they are volunteers.
IMF LIFELINE
More than 5,000 people have been killed in the conflict, which has
now surged, with more than 70 Ukrainian servicemen and at least 24
civilians killed so far this month, according to Reuters
calculations based on official Ukrainian figures.
A Ukrainian military spokesman said around 50 tanks, 40 missile
systems and 40 armoured vehicles had crossed overnight into eastern
Ukraine from Russia. It was not immediately possible to verify the
figures, which were higher than in previous such statements. Moscow
dismisses them as groundless.
The fighting has destabilised Ukraine both militarily and
economically. As the deal was reached, Ukraine was offered a
$40-billion lifeline by the International Monetary Fund to stave off
financial collapse.
Russia's economy has also suffered, from the sanctions imposed over
its support for the separatists in eastern Ukraine and annexation of
Crimea last year. Russian shares surged on Thursday after the deal
was announced and the rouble gained, but then slipped back.
WEAPONS WITHDRAWAL
The agreement addressed some of the main stumbling points, including
a "demarcation line" between separatists and Ukrainian forces, which
the rebels wanted to reflect gains from a recent offensive which
shredded an earlier ceasefire deal.
The compromise was that the rebels will withdraw weapons from a line
set by the earlier Minsk agreement in September, while the
Ukrainians will withdraw from the current frontline.
Ukraine will also get control of its border with Russia, but in
consultation with the rebels and only after the regions gain more
autonomy under constitutional reform by the end 2015.
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The ceasefire and heavy weapons pullback would be overseen by
Europe-wide security body, the Organization for Security and
Cooperation in Europe.
"We have managed to agree on the main issues," Putin told Russian
reporters after the talks in the Belarussian capital Minsk.
"Why did it take so long? I think this is due to the fact that the
Kiev authorities still refuse to make direct contact with the
representatives of the Donetsk and Luhansk peoples' republics," he
said, referring to two rebel-held regions in eastern Ukraine.
French President Francois Hollande said there was still much work to
be done on the Ukraine crisis, but the agreement was a real chance
to improve the situation. "The coming hours will be decisive," he
said later in Brussels.
Pro-Moscow separatists tightened the pressure on Kiev by launching
some of the war's worst fighting on Wednesday, killing 19 Ukrainian
soldiers in assaults near the railway town of Debaltseve.
As the fighting escalated, Washington has begun openly talking of
arming Ukraine to defend itself from "Russian aggression", raising
the prospect of a proxy war in the heart of Europe between Cold War
foes.
FUND BAILOUT
The talks in Minsk took place as an International Monetary Fund
mission agreed a bailout to save Ukraine from bankruptcy.
The Fund provisionally agreed a $17.5 billion facility with Ukraine,
part of a $40 billion funding package, IMF Managing Director
Christine Lagarde said.
Kiev and NATO accuse Russia of supplying separatists with men and
weapons. Moscow denies it is involved in fighting for territory
Putin calls "New Russia".
As the French and German leaders' peace initiative was announced,
pro-Russian rebels appeared determined to drive home their advantage
ahead of a deal.
Armoured columns of Russian-speaking soldiers with no insignia have
been advancing for days around Debaltseve, which has seen heavy
fighting in recent days.
On the Russian side of the border, Moscow has begun military
exercises in 12 regions involving more than 30 missile regiments,
RIA news agency reported on Thursday, citing a Defence Ministry
official.
(Additional reporting by Elizabeth Piper and Maria Kiselyova, Pavel
Polityuk, Elizabeth Pineau, Polina Devitt, Aleksandar Vasovic,
Alessandra Prentice, Margarita Chornokondatrenko, Gabriela
Baczynska, Alexander Winning, Lidia Kelly, Richard Balmforth and
Andrei Makhovsky; writing by Giles Elgood and Philippa Fletcher;
editing by Janet McBride and Peter Millership)
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