Germany Prepared for Long-Term Dispute With Russia Over Ukraine

Germany wants to avoid wrecking Russia's economy with sanctions imposed in the conflict over Ukraine, Foreign Minister Frank-Walter Steinmeier said.

The economic measures are taking a toll on Russia, so the European Union doesn't need to intensify them, Steinmeier said in a speech today in Berlin. Instead, Germany must take the lead in negotiations aimed at defusing the eight-month conflict on Europe's eastern periphery, he said.

"An economically isolated Russia, one that may face collapse, would not help improve security in Europe or in Ukraine, but would pose a danger to itself and others," Steinmeier said. "One of the problems is that many people aren't having a dialogue. That's not true of the Germans."

Steinmeier echoed Chancellor Angela Merkel's warning that the standoff with Russia over the conflict in Ukraine will be lasting. Even as fighting flares between pro-Russian separatists and Ukrainian forces in the former Soviet republic's east, with Europe accusing Russia of stoking the conflict, Steinmeier said the door to talks should remain open.

The clash over Ukraine "won't be over tomorrow or the day after tomorrow," Steinmeier said. "I plead as a necessary reaction not to hold senseless talks, but at the same time, not to foreclose simply on all the channels" with Russia.

Germany can't declare Russia, its "rather large neighbor," a friend or enemy, Steinmeier said. Officials in the 28-member EU who argue for ratcheting up sanctions because they're working suffer from a "dangerous misunderstanding."

Wrestling Russia

"Can that really be our aim and purpose, to wrestle Russia economically to the ground with those instruments that we have and can sharpen?" Steinmeier said. "My single answer is: No, that's not true and can't be the purpose of sanctions."

Germany under Merkel's stewardship is leading European efforts to mediate the conflict. The chancellor met with President Vladimir Putin for almost four hours during the Group of 20 summit in Brisbane, Australia, this month.

As Ukrainian President Petro Poroshenko held his first talks with Putin in almost a month, Merkel signaled yesterday that she's ready for a lengthy crisis.

"We need patience and staying power to overcome the crisis," she told lawmakers in Germany's lower house of parliament, or Bundestag, yesterday.

To contact the reporters on this story: Brian Parkin in Berlin at bparkin@bloomberg.net; Patrick Donahue in Berlin at pdonahue1@bloomberg.net

To contact the editors responsible for this story: Alan Crawford at acrawford6@bloomberg.net Tony Czuczka, Eddie Buckle