Seven international observers belonging to the OSCE, five members of the Ukrainian military, and their driver were aboard the bus.
They have been taken to an undisclosed location, with the separatists accusing them of being spies.
International observer missions had been agreed to by the US, EU, Ukraine, and Russia, in Geneva, however not been agreed to by the separatists.
The detaining of the international observers is but one more addition to the high tensions in eastern Ukraine.
Separatists have seized several towns in the area, while Ukrainian troops have begun slowly reclaiming territory.
However, Russia continues it's threats to invade Ukraine if things aren't done peacefully.
Backing those threats are fifty thousand Russian troops who are conducting maneuvers just east of the border.
NATO nations are on increasing alert due to the deteriorating situation, which has not been helped by Russia's continued belligerence.
As part of the increased preparedness, US troops have arrived in Poland to take part in exercises with NATO nations.
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