Russian forces have pulled out of the strategically important once-occupied eastern Ukrainian city of Lyman to avoid being surrounded by Ukrainian troops, Russia's military confirmed on Saturday.
Russia's Tass and RIA news agencies, citing the Russian defense ministry, made the announcement.
"In connection with the creation of a threat of encirclement, allied troops were withdrawn from the settlement of Krasny Liman to more advantageous lines," the defense ministry said, using the Russian name of the town.
Ukraine's capture of Lyman, which has served for months as a logistics and transport hub for Russian operations, marked a major defeat for Moscow, a day after President Vladimir Putin proclaimed the annexation of four Ukrainian regions. These include Donetsk, where Lyman is located.
Lyman is 160 kilometers (100 miles) southeast of Kharkiv, Ukraine's second-largest city. Ukrainian forces had pushed across the Oskil River as part of a counteroffensive that saw Kyiv retake vast swathes of territory beginning in September.
Lyman, a key transportation hub, had been an important site in the Russian front line for both ground communications and logistics. With it gone, Ukraine can push further into the occupied Luhansk region, one of four regions that Russia annexed Friday after an internationally criticized referendum vote at gunpoint.
The ministry said in a statement that Russia had inflicted serious losses on the Ukrainian forces by launching "massive fire strikes" against them. It did not provide evidence, and the claim could not be independently verified.
"Despite the losses suffered, the enemy, having a significant superiority in forces and means, introduced reserves and continued the offensive in this direction," it said.