Russian forces have pulled out of the eastern Ukrainian city of Lyman to avoid being surrounded by Ukrainian troops.
RIA news agencies, citing the Russian defense ministry, made the announcement on Saturday.
The defense ministry said; "In connection with the creation of a threat of encirclement, allied troops were withdrawn from the settlements to more advantageous lines."
Ukraine's capture of Lyman, which has served for months as a logistics and transport hub for Russian operations, marked a major defeat for Russia.
This comes a day after President Vladimir Putin proclaimed the annexation of four Ukrainian regions.
These include Donetsk, where Lyman is located.
Lyman 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 Luhansk region, one of four regions that Russia annexed on Friday.