President Barack Obama said on Monday the United States and its European allies remain committed to finding a diplomatic solution to tensions with Russia over Ukraine.

“Even as we continue to work for a diplomatic solution we are making it clear again today that if Russia continues on its current course, which is ruining the Russia economy and hurting the Russian people, as well as having such a terrible effect on Ukraine, Russia's isolation will only worsen both politically and economically,” Obama said.

Obama, Merkel Opt for Diplomacy in Ukraine Crisis

He warned that the West cannot allow Russia to redraw Europe's borders "at the barrel of a gun," adding that Moscow is continuing its "aggression" against Ukraine, sending in tanks and artillery to support separatists in violation of last September's cease-fire agreement.

Obama, Merkel Opt for Diplomacy in Ukraine Crisis

German Chancellor Angela Merkel, speaking at a joint news conference with the U.S. leader, said that while there have been setbacks in reaching a diplomatic solution with Russia over Ukraine, she does not see a military solution to the conflict.

Obama, Merkel Opt for Diplomacy in Ukraine Crisis

Merkel came to the White House Monday for talks with Obama on a wide range of issues. Topping their agenda are the fighting in Ukraine and the international coalition against the Islamic State group.

The two leaders said the U.S. and Europe stand united to find a diplomatic solution to end the crisis in Ukraine and the resulting stand-off it triggered between Russia and Western allies.

Obama also said Monday his administration is looking at all options in handling the crisis in Ukraine, but he has not yet decided whether the United States will provide arms.

“The possibility of lethal defensive weapons is one of those options that is being examined, but I have not made a decision about that yet," he said.

He said there is no "specific point" at which lethal defensive weapons would be "appropriate."

But he said he had instructed key advisors to examine the plausibility of supplying Kyiv with weaponry, in the event that diplomacy fails to bring peace. Ukraine leaders insist that such hardware is necessary to offset recent rebel military gains and end the uprising near the Russian border.

Merkel opposes arming Ukraine forces for fear of escalating tensions with Moscow, already at their highest point since the end of the Cold War. However, she added that no matter what Obama decides, "the alliance between the United States and Europe will continue to stand, will continue to be solid."

The U.S. and German leaders said they would "continue to encourage a diplomatic solution" and agreed that sanctions against Russia need to remain "fully in force" as long as it "continues on its current course."

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On Sunday, Merkel participated in four-way phone talks with the leaders of Ukraine, Russia and France on a French-German plan aimed at ending the surging rebellion in eastern Ukraine.

Merkel said abandoning the principle of territorial integrity, which is at the heart of the Ukraine crisis, would jeopardize "the peaceful order of Europe."

"For somebody who comes from Europe, I can only say, if we give up this principle of territorial integrity, we will not be able to maintain the peaceful order of Europe," Merkel said Monday. "It's essential."

Merkel and Ukrainian President Petro Poroshenko, Russian President Vladimir Putin and French President Francois Hollande agreed to meet Wednesday in Minsk, Belarus, for further discussions.

Details of those talks have not been disclosed, and it was not clear Monday whether separatist delegates would join Russian, Ukrainian and European envoys in the negotiations.

The French-German plan is based on September's failed cease-fire agreement signed in Minsk, but with more details on timing, according to a senior U.S. State Department official.

The fighting in Ukraine has claimed more than 5,600 lives since rebels launched their uprising 10 months ago. On Sunday, Poroshenko voiced optimism that a "swift and unconditional cease-fire" will be reached.

Despite that optimism, Putin warned that Ukraine must end its military operations near the Russian border. He also said Kyiv must end what he called punitive economic measures aimed at disrupting daily life in Russian-speaking eastern Ukraine.

For his part, French President Hollande said the upcoming talks present "one of the last chances" for reaching peace after nearly a year of fighting in eastern Ukraine.