The troops pullout came before an expected meeting between Putin and his Ukrainian counterpart Petro Poroshenko in Milan next week.
Pro-Russian separatists suffer their worst casualties since an increasingly fraying cease-fire began on September 5.
Fatality said to be a Swiss citizen; fierce fighting reported near Donetsk airport.
There were no children among those killed in the shelling, though witnesses said the dead included a biology teacher and the parent of a child at the school.
The move appeared to be a response to a criminal case launched on Monday by Russia against Ukraine's senior political and military leadership. The two legal investigations will further ratchet up tensions between the two.
President Petro Poroshenko attends memorial to Jews who died at site of one of worst mass killings during the Holocaust.
The firebombing at the Great Choral Synagogue on September 24, the eve of Rosh Hashanah, reportedly did not cause damage.
The annual pilgrimage of 25,000 Jews is the first since the ouster of Viktor Yanukovych's government in February, in a revolution that started over his alleged corruption and perceived allegiance to Russia.
New peace agreement signed Saturday requires both sides to remove heavy artillery from the front line.
Yair Shamir cites boycott of produce from West Bank settlements as one of the key reasons he will withstand European pressure.