The Organization for Security and Co-operation in Europe described the attack as aimed at halting its monitoring activities in the separatist region, but stressed that it has no plans to leave.
The OSCE's special monitoring mission to Ukraine, which observes the conflict and observation of the peace deal signed in February, said that four of its armored vehicles were destroyed overnight in an "apparent arson attack".
The reinforced glass of the windows of the armored vehicles had cracked in the heat of the fire and their paint had peeled off, an AFP photographer reported.
"The Mission has no plans to withdraw at this stage," it added.
It said that separatists are responsible for ensuring the safety of the mission and its property.
The vehicles were parked outside the Park Inn Hotel in downtown Donetsk with around 20 other OSCE vehicles.
The attack came at around 2.30 am on Sunday with observers hearing the tyres bursting in the blaze, the OSCE said in a statement.
It said three of the 4x4 vehicles were completely destroyed while one was badly damaged and several other vehicles nearby suffered more minor damage.
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