The order covers services such as schools, hospitals and emergency services, a senior security official speaking on condition of anonymity told AFP.
It comes just over a week after Kiev announced passport controls around pro-Russian separatist areas in the east, as well as the end of state payments including pensions to those in the areas.
Seven months of fighting between Ukrainian forces and pro-Moscow separatists with strongholds in eastern Ukrainian cities such as Donetsk and Lugansk have killed more than 4,100 people, the United Nations says.
"This is a decisive step, the games have stopped," the security official added. "All the structures that the state finances will be withdrawn from there."
"Ukraine will no longer finance them. This includes schools, kindergartens and hospitals."
The latest move comes with the unrest in Ukraine high on the agenda at a G20 summit in Brisbane, where Western leaders are piling fresh pressure on Russian President Vladimir Putin.
The latest decree also included orders for the evacuation of state workers plus the withdrawal of all courts and judges and relocation of prisoners.
In addition, it proposed that Ukraine's central bank take steps over the next month to withdraw all banking services for businesses and individuals in the regions.
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