The interior ministry gave the heavy casualty toll and added that the pro-Russian gunmen controlling the town were using civilians as human shields and were shooting from houses, some of which were on fire.
It said there were civilian casualties but did not provide a toll.
The defence ministry said an Mi-24 helicopter gunship was brought down near Slavyansk by heavy machine gun fire while on a combat mission. The pilots survived, it said.
Last Friday, the rebels brought down two other Mi-24s with what Ukrainian officials said were shoulder-launched missiles.