Chancellor Olaf Scholz was pleased that Russia was withdrawing individual troops from the border with Ukraine.
"This is a good sign and we hope that more will follow," said the SPD politician after his meeting with Russian President Vladimir Putin on Tuesday afternoon in Moscow.
A de-escalation of the situation is "urgent".
There is "no good reason" for the many soldiers around Ukraine.
One must remain in dialogue and not end up in a dead end;
"that would be a misfortune for us all".
For his part, Putin announced his willingness to continue working with the West on European security issues.
"We are ready for this joint work in the future, too," Putin said.
"We are also ready to go down the path of negotiations." Scholz and Putin discussed the situation in Ukraine for several hours on Tuesday.
However, the conversation lasted less than expected.
Scholz said that security in Europe is not possible against Russia, "but only with Russia".
He refuses to describe the current situation in the Ukraine conflict as hopeless.
"War in Europe has become unthinkable for my generation." Politicians must ensure "that it stays that way".
Bilateral economic relations continue to have great potential.
At the same time, Scholz criticized the fact that "the spaces for civil society are becoming narrower".
He called the ban on the non-governmental organization Memorial.
Scholz also stressed that he expects Deutsche Welle to continue operating in Russia.
Wreath at the Tomb of the Unknown Soldier
Putin emphasized the importance of the Nord Stream 2 Baltic Sea pipeline, which will strengthen Europe's energy security.
At the same time, Russia is still ready to route gas through Ukraine after 2024.
Scholz did not comment extensively on Nord Stream 2;
he only referred in general terms to comprehensive reactions should Russia invade Ukraine.
The Chancellor had previously laid a wreath on the Kremlin wall at the Tomb of the Unknown Soldier, and a military band played the German national anthem.
The Chancellor also spoke to his predecessor, Angela Merkel, about Putin a few weeks ago. After all, after numerous meetings over the past two decades, she knows the Russian better than most other Western politicians.