Angela Merkel has called on both sides to engage in order to bring peace to Ukraine as she pledged €500 million to help rebuild the war-shattered eastern regions.
She said new sanctions against Russia were not her main consideration, despite Moscow sending aid trucks into Ukraine without permission.
Peace will not be possible until there are better border controls between the countries, the German Chancellor added.
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Chancellor George Osborne will seek to reassure financial markets on Monday morning following Britain's decision to leave the EU.
In his first outing since the referendum result, the lead Leave campaigner has outlined his vision for a post-Brexit Britain.