But there have been many such agreements in the past and the omens for peace in the region are not good.
Russian-backed fighters and the Ukrainian army have clashed almost daily for the last 30 months.
At the beginning of January there was a serious escalation in the violence.
Ukraine said two of its soldiers had been killed and 16 injured in fighting over the weekend.
In theory the two sides will this week pull back heavy weaponry from areas near the front line.
But a source at the Munich talks over the weekend told the BBC that no progress had been made in reaching a political solution.

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Fans chanted "We want Moyesy out" as the Black Cats lost 1-0 to fellow strugglers Middlesbrough.
Sunderland are 12 points adrift of safety with five games remaining, and could be relegated at the weekend.
Asked if he would leave, Moyes, 54, said: "No, I'm here, I'm the manager, you take it on the chin."
While there's a chance, I've got to keep going
He added: "I'm a football supporter, I know what it's like. You don't like seeing your team lose.
"There is nobody who wants to win more than me. I am used to winning, I'm not used to losing and I don't want to get used to it either."
Sunderland have failed to score in 17 Premier League games this season - more than any other side in the league.
The players were booed off at full-time at the Riverside, but Moyes - who was charged by the Football Association earlier on Wednesday after telling BBC reporter Vicki Sparks she might "get a slap" - said his team had to keep going.
"We are not enjoying it, we are not enjoying losing or the position we are in," the Scot added.
"Criticism is rightly due, but I wouldn't do it on tonight's performance.
"While there's a chance, I've got to keep going and we've all got to keep going."
A ceasefire is due to come into effect in eastern Ukraine following a deal in Munich over the weekend to halt fighting and withdraw heavy weapons from the front line.
[NEXT_CONCEPT]
Sunderland manager David Moyes has resisted calls from fans to quit with his side facing relegation from the Premier League.