Pro-Russia separatists shot down a Ukrainian military transport plane Saturday, killing all 49 crew and troops aboard in a bloody escalation of the conflict in the country’s restive east.

It was a bitter setback for the Ukrainian forces, which have struggled to suppress an armed insurgency by foes of the new government. And it came only a week after Ukraine’s new president, billionaire candy magnate Petro Poroshenko, spoke about a peace plan in his inaugural address.

Yet the deadliest single incident in the four-month-old conflict suggested the two sides were still far apart in their demands and talk of de-escalating the conflict remained premature.

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