Russian President Vladimir Putin said Wednesday he ordered troops to pull out from the regions near Ukraine to help create a positive environment ahead of the nation's presidential vote, but added the continued fighting will make it hard for the Kremlin to deal with the winner.

The pullout announced Monday was meant to create "favourable conditions for Ukraine's presidential vote and end speculations," Putin told reporters in Shanghai, China, where he attended a security summit.

In comments broadcast on Russian television, Putin referred to U.S. and NATO remarks that they aren't seeing any sign of the withdrawal, saying "those who aren't seeing it should look better." He said the pullout will be clearly visible in satellite images.

"The numbers of troops and armour are quite large, and their pullout requires serious preparations. If the weather is good, they will see it all from space," Putin said.

NATO, which estimates that Russia has 40,000 troops along the border with Ukraine, repeated Wednesday it could not yet see any signs of a Russian withdrawal.

Death toll climbs to 127

In another development, a UN official said Wednesday 127 people have died in several weeks of violence in Ukraine's south and east. The death toll highlights Ukraine's tenuous security situation as armed pro-Russian insurgents in the east try to disrupt Sunday's presidential elections.

Assistant Secretary-General for Human Rights Ivan Simonovic told the Security Council the human rights situation in eastern Ukraine continues to get worse, with "more arms, and more arms being used."

Simonovic also warned of a "wave of displaced persons" emerging from the troubled east. He said about 1,000 have been officially registered so far but said the real number is likely much higher.

He also criticized recent abductions of electoral commission members and related intimidation, saying it would make Sunday's elections "that much more difficult."

Clashes between the rebels and Ukrainian government forces continued on Wednesday in eastern Ukraine. The insurgents have faced a challenge from Ukraine's richest man, metals tycoon Rinat Akhmetov, who demanded an end to the mutiny that he said was destroying eastern Ukraine and called on workers to hold protests. They have also faced angry local residents, increasingly exasperated over being caught in crossfire that have destroyed their housing and endangered their lives.

Putin's pullout order and his statement welcoming the election, which he had previously urged be postponed, suggests he has no immediate intention to send the Russian army into Ukraine, where pro-Russian insurgents have seized government buildings and clashed with Ukrainian government forces in weeks of fighting that has left dozens dead.

Putin's moves reflected an apparent desire to ease tensions with the West over Ukraine and avoid further sanctions.

But the Russian leader said Wednesday that it would have made more sense for the Ukrainian authorities to have a constitutional referendum that would approve a new constitution before the election.

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Russian President Vladimir Putin says Russia has helped establish a dialogue between the central government in Kyiv and people in southeast Ukraine. (The Associated Press)

"It will be very difficult for us to develop relations with people, who come to power amid a punitive operation in southeastern Ukraine," he said.

Putin added that Russia has helped establish a dialogue between the central government in Kyiv and people in the southeast.

"We have done everything to help start these contacts," he said.

Many in eastern Ukraine resent the new authorities in Kyiv, which came to power after the toppling of Ukraine's pro-Russian president after months of protests. They see the new government as a group of nationalists bent on repressing Russian speakers.

Russia supports a peace plan brokered by Switzerland and the Organization for Security and Co-operation in Europe, which envisages a broad amnesty and the launch of a national dialogue that focuses on decentralization of government and upholding the status of the Russian language.

A third round table under the plan is being held Wednesday in the southern city of Mykolaiv.

Battalions home within 10 days, Russia says

The Russian Defence Ministry said that its military units in the regions near Ukraine on Wednesday began moving to railway stations and airfields en route to their home bases, which they are expected to reach before June 1. Russian television broadcast footage of columns of tanks and howitzers towed by heavy trucks. It wasn't immediately clear where the footage was taken.

The ministry said its units will make most of the journey by air or rail to reduce the pressure on highways.

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A Pro-Russian militant mans a fortified front line rebel position in east Ukraine earlier this week. (Yannis Behrakis/Reuters)

Gen. Vladimir Shamanov, the chief of the Russian Airborne Forces, said in televised remarks that battalions from three airborne divisions would return to their home bases within 10 days.

The Ukrainian government and the West have seen the Russian military buildup in the areas near the border as a possible precursor for grabbing more land following Russia's annexation of Crimea in March. The United States and the European Union slapped sanctions on members of Putin's entourage after Russia took Crimea, and have threatened more crippling sanctions if Moscow tries to invade eastern Ukraine or derail its presidential vote set for this Sunday.

Putin on Wednesday sought to offset the Western pressure by visiting China, where he oversaw the signing of a $400 billion US, 30-year deal to export Russian gas to China.