Annexation of Crimea is a crime - stated German Chancellor Angela Merkel said at a joint press conference in Moscow with the Russian president.

"Our cooperation has suffered serious damage due to criminal annexation of the Crimea and armed conflict in eastern Ukraine. This poses a threat to peace in Europe. However, history teaches us that the conflicts no matter how difficult they may be, must be solved through negotiations," - said Merkel.

For his part, Vladimir Putin acknowledged that Russia and Germany`s viewpoints on Ukraine differ, but they do agree on the need for diplomatic solution of the situation.

"It is no secret that relations between Germany and Russia are in a bad phase. This is caused by a different vision of events in Ukraine. I believe that despite the difficulties, the Minsk process is working," - said Putin.

Due to the ongoing conflict in Ukraine, the German Chancellor did not attend Victory Day parade in Moscow and arrived a day later.