Russian forces move to encircle Lysychansk, starting with southern villages.

DRUZHKIVKA, Ukraine — Ukraine’s decision to retreat from Sievierodonetsk, a strategic city in the country’s east, hands Russia another victory in its grinding campaign to seize the Donbas region.

But the battle for Lysychansk, the city across the Siversky Donets River, is far from over, as Ukrainian officials signaled their forces would pull back in order to retrench and take advantage of the higher ground on that side of the river.

The fight for the second of the twin cities covers a…

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