German Chancellor Angela Merkel has called Russia's annexation of the Crimea "unjustifiable and inexcusable" in her 2015 budget speech to the German Parliament.
Addressing the Bundestag on Wednesday, she urged Russia to respect Ukraine's territorial integrity according to the Budapest Memorandum on security assurances signed in 1994 between Russia, the U.K. and U.S.
She said: "Russia's proceedings over Ukraine call into question the European peace order and break international laws."
Stating that Ukraine's Donetsk and Luhansk regions were held by pro-Russian separatists who have been in open rebellion against the government in Kiev, Merkel said: "Russia's direct or indirect participation in the fighting in Donetsk and Luhansk is also not justified or excused."
Merkel said the Ukraine crisis could not be solved militarily and said Germany supported a diplomatic solution with Russia over the crisis.
She said: "We support Ukraine politically and economically ... We need patience and a deep breath to overcome the Ukraine crises."
More than 4,000 people have been killed and more than 9,000 wounded in the conflict between the Ukrainian government and pro-Russian separatists in eastern Ukraine since mid-April, according to the UN.