Ukrainian President Petro Poroshenko (2nd from left) met Western leaders ahead of the summit
Western leaders have criticised Russia for its "destabilising" influence on the crisis in Ukraine, at the start of a Nato summit in Wales.
Nato and the UK warned that pressure on Russia would be increased if it did not change course in eastern Ukraine.
Prior to the summit, Ukraine's president briefed US and EU leaders on earlier discussions on a ceasefire plan with Russian President Vladimir Putin.
Some 2,600 people have died in fighting between Ukrainian troops and rebels.
The West says it has evidence that Mr Putin is supporting the separatists with training and arms, and has sent Russian troops across the border. Russia denies the accusation.
The conflict has forced more than a million people from their homes in eastern Ukraine, according to United Nations estimates.
Ukrainian government forces have recently suffered several losses, after rebels launched offensives in both the Luhansk and Donetsk regions, and further south around the city of Mariupol on the Azov Sea.
Reports are emerging that the separatists have begun shelling the outer defences of Mariupol.
At least two military vehicles were seen on fire in the area, and eyewitnesses spoke of gunfire.
Correspondents say the Nato summit in Wales is the most important in decades
David Cameron and Barack Obama visited a school in Newport on Thursday ahead of the summit
The two-day summit will be dominated by the crisis in Ukraine.
But leaders are also set to discuss the rise of Islamic State (IS), and Afghanistan where Taliban militants launched a deadly attack on a government compound on Thursday.
Writing in the Times newspaper, UK Prime Minister David Cameron and US President Barack Obama said they would "confront" IS, warning their countries would "not be cowed by barbaric killers".
Their statement comes following the release of a new IS video showing the killing of US journalist Steven Sotloff, just days after the group beheaded another American reporter, James Foley.
In the latest video, an IS militant is also seen threatening to kill a UK hostage.
Russian actions 'unacceptable'
On Thursday, Nato Secretary-General Anders Fogh Rasmussen said the summit was taking place in a "dramatically changed security environment", with Russia "attacking Ukraine".
"We are still witnessing unfortunately Russian involvement in destabilising the situation in eastern Ukraine," he told journalists in Newport on Thursday ahead of the summit's official launch.
Mr Cameron stressed pressure of sanctions was "the right way to tell the Russians that what they are doing is unacceptable".
Correspondents say the summit is Nato's most important for decades, as leaders faced the question of whether the alliance is equipped to deal with 21st Century challenges.
The alliance is expected to approve plans to create a rapid response force composed of several thousand troops from member states, able to deploy within 48 hours.
European leaders are also set to discuss a new round of tougher economic measures against Russia.
The challenge from Moscow is two-fold. Russia is, firstly, overturning the post-Cold War security order in Europe set out in the Nato-Russia Founding Act of 1997.
This document, signed in Paris by Nato leaders and then-President Boris Yeltsin, set out to build "a lasting and inclusive peace in the Euro-Atlantic Area".
It contained an explicit requirement to respect the sovereignty, independence and territorial integrity of all states. Nato's view is that Russia's behaviour in Ukraine is a blatant breach of the principles contained in the Founding Act.
Secondly, Russian willingness to back separatist forces and to nibble away at the territory of countries that used to be part of the Soviet Union has revived fears among Nato members which border Russia, especially Poland and the Baltic republics.
The principal task of this summit is to try to reassure worried Nato members and to send clear signals to Moscow about Nato's resolve.
'Brazen aggression'
French President Francois Hollande signalled a toughening of European policy towards Russia on Wednesday by suspending a military deal worth 1.2bn euros ($1.6bn; £0.95bn).
The decision risks costing France at least 1bn euros (£800m), officials say.
President Obama has urged Nato members to send an unmistakable message of support to Ukraine in the face of what he called "brazen aggression" by Russia.
The Pentagon has announced that the US is sending about 200 troops to Ukraine to take part in military exercises later this month in a show of solidarity.
On Wednesday, President Poroshenko said he had agreed a "ceasefire process" during telephone talks with Mr Putin, who said he hoped a peace deal could be reached when rebels met envoys from both states on Friday.
Following the conversation, Mr Putin announced a seven-point peace plan:
- Ukrainian army and eastern rebels should stop "active offensive operations"
- Ukrainian troops must pull back to a distance where they would be unable to shell population centres
- International monitoring of the ceasefire
- No use of military jets against civilians
- "All-for-all" prisoner exchange without preconditions
- Humanitarian corridor for refugees and to deliver aid
- Restoration of destroyed infrastructure
But Mr Rasmussen called the ceasefire plan "insincere".
"I think the bottom line is that the Russians are not sincerely interested in a ceasefire. They continue to destabilise eastern Ukraine," he told the BBC on Wednesday.
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