It's due to come into effect this Sunday followed by a series of further measures to put an end to the fighting, following a marathon 15 hours of talks between the leaders of Russia, Ukraine, France and Germany.
However, Prime Minister David Cameron, who wasn't involved in the negotiations, has maintained his sceptical approach acquired from the side-lines, despite the agreement in Minsk.
"What matters most of all is actually actions on the ground rather than just words on a piece of paper, and I think we should be very clear that unless Vladimir Putin needs to know that unless his behaviour changes the sanctions we have in place won't be altered," said Mr Cameron.
Mr Cameron's concerns have been echoed on the ground in Ukraine's capital Kiev.
British aid worker Pat Joy who runs a Christian orphanage in the city believes war is inevitable.
On Premier's News Hour, she said: "Unfortunately we're going to have to fight to keep our freedom and nobody wants to supply us with help in that way. It is going to be a fight, I'm afraid."
"This is what happens all the time, they (Pro Russian separatists) keep saying 'yes we'll pull back, we'll put back, we'll pull back' and they pull back from A and then attack B," she added.
On Wednesday, the Prime Minister warned against the "appeasement" of Russia over the conflict in Ukraine ahead of the four-way summit between the leaders of Russia, Ukraine, France and Germany.
British aid worker Pat Joy speaking from Kiev:
