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Russia has reportedly withdrawn some troops, but the exact number is unclear
Nato is not seeing a Russian troop pullout from the border with Ukraine, the military alliance's chief has said.
Speaking ahead of a Nato summit, Anders Fogh Rasmussen again stressed that the best way to solve the crisis was through "a political dialogue".
Nato foreign ministers are due to discuss ways to help Ukraine and reassure allies in Eastern Europe at the meeting in Brussels.
This comes after Russia's takeover last month of Ukraine's Crimea region.
It is the first time ministers from the 28 member states of the alliance have convened since the annexation of Crimea.
Nato has also bolstered air drills to be held over the Baltic states.
On Monday, Russian President Vladimir Putin told German Chancellor Angela Merkel he had ordered a partial withdrawal of Russian troops near the eastern border of Ukraine, according to the German government.
Moscow is believed to have massed tens of thousands of soldiers there in recent days, causing alarm in Kiev and the West.
End QuoteMoscow has broken with a pattern of behaviour that has characterised diplomacy in Europe since the end of the Cold War"
Meanwhile, Russian energy firm Gazprom is increasing the price it charges Ukraine for gas from Tuesday.
Gazprom's chief executive Alexei Miller said the price of Russian gas for Ukraine had gone up to $385.5 (£231) per 1,000 cubic metres in the second quarter of 2014 from the previous rate of $268.5.
Mr Miller added that Ukraine's unpaid gas bills to Russia stood at $1.7bn.
In other developments on Tuesday
- Ukraine's parliament ordered security services to disarm all "illegal armed groups", following Monday night's shooting in Kiev that involved a member of the radical Right Sector group
- Russia's upper house of parliament voted to pull out of a treaty with Ukraine on the Black Sea Fleet's presence in Crimea
Tensions between the Kremlin and the West rose after the overthrow of pro-Kremlin Ukrainian President Viktor Yanukovych in February, following months of street protests.
Russia's subsequent decision to annex Crimea triggered a crisis in relations.
The US and EU have imposed sanctions on members of President Putin's inner circle and other officials. Russia has retaliated with its own sanctions on US politicians.
Rattled nerves"Unfortunately, I cannot confirm that Russia is withdrawing its troops," Mr Rasmussen told reporters. "This is not what we are seeing."
He said Moscow had undermined the principles on which a Nato-Russia partnership was built, adding that there could be no more "business as usual".
Nato foreign ministers are expected to discuss the formal suspension of co-operation with Moscow at the Brussels meeting.
In a statement, the alliance said ministers would speak to acting Ukrainian Foreign Minister Andriy Deshchytsia about ways to support Ukraine with its defence reforms.
They are also expected to look at options including situating permanent military bases in the Baltic states to reassure members in Eastern Europe.
Russia's actions in Ukraine have rattled nerves in Estonia, Latvia and Lithuania, which were part of the Soviet Union during the Cold War.
Nato jets will take part in air patrols in the region later in a routine exercise that analysts say has taken on added significance due to the crisis.
Several Nato countries, including the UK, US and France, have offered additional warplanes.
'Crude violation'Earlier, Ukraine condemned a visit to Crimea by Russia's Prime Minister Dmitry Medvedev and a delegation of government ministers.
A foreign ministry spokesman in Kiev said the highest-level trip to the Black Sea peninsula by officials from Moscow since its annexation by Russia was a "crude violation" of international rules.
Crimeans voted to leave Ukraine for Russia on 16 March, in a Moscow-backed referendum that was later condemned as illegal by the UN General Assembly.
Mr Medvedev announced that he would make Crimea a special economic zone, with tax breaks and reduced bureaucracy to attract investors.
He also vowed to quickly boost salaries and pensions, and to improve education, healthcare and local infrastructure.
However, a number of local residents have complained they have yet to see the promised reforms.
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