Ukraine says its troops have withdrawn from Avdiivka - a key eastern town besieged by Russian forces for months.
The decision was taken in order to save the soldiers' lives, said President Volodymyr Zelensky.
Almost all of Avdiivka's pre-war population of more than 30,000 people have left and the city itself is almost completely destroyed.
Its fall marks Russia's biggest win for months and Mr Zelensky blamed faltering Western weapons supplies.
Ukraine has been experiencing shortages in ammunition, mainly as a result of political squabbling in the US, its main supplier.
Speaking at the Munich security conference on Saturday, Mr Zelensky urged Western countries to help Ukraine defeat "the monster" - as he called President Vladimir Putin.
The Russian leader will make the next few years "catastrophic" for many more countries like Ukraine if the Western world does not stand up to him, he warned.
Mr Putin launched a full-scale invasion of Ukraine on 24 February 2022.
"Do not ask Ukraine when the war will end. Ask yourself, why is Putin still able to continue it?" Mr Zelensky told the conference.
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