The street fighting in Sevierodonetsk has been described as very intense, while Russia has shelled Ukrainian forces from the air.
On Friday morning, Regional Governor Serhij Hajdaj stated that troops had been ordered to withdraw from the city.
"Holding positions that have been torn apart for months is no longer meaningful," said Serhiy Hajdaj on Ukrainian television.
Since Russia withdrew from parts of northern Ukraine, fighting has become increasingly focused on eastern Ukraine and the Donbas region.
The Russian offensive has been relatively successful and SVT's correspondent Samir Abu Eid believes that Ukraine is on the verge of losing the area.
- There are many indications of that right now, he says.
- But Ukraine is still resisting strongly and even though they are retiring from a city today, there are other places in the Donbas that they still control, he continues.
Several Russian offensives
Sevierodonetsk was the last city in Luhansk under Ukrainian control.
The takeover of the city is the latest in a series of Russian conquests in the area.
On Thursday, the Ukrainian army stated that Russia has taken control of the villages of Loskutivka and Rai-Oleksandrivka and is trying to take over Syrotyne, which is located outside Sievjerodonetsk.
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Governor: Troops have been ordered to leave Sievjerodonetsk Photo: Reuters