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Merkel Open to Dialogue With Moscow Despite Sanctions

German Chancellor Angela Merkel attends the handover ceremony of the annual report of the National Regulatory Control Council (NKR) at the Chancellery in Berlin Oct. 6, 2014.

German Chancellor Angela Merkel said in a speech in parliament on Thursday that sanctions against Russia over Ukraine were necessary but they did not preclude dialogue with Moscow.

Speaking ahead of an EU-Asia summit in Milan where Merkel and other European leaders are to meet with Russian President Vladimir Putin for the first time in months, the German leader described the situation in Ukraine as "very difficult."

In her speech, Merkel also said the euro crisis had not yet been solved and stressed the need for members of the single currency bloc to stick to fiscal rules to ensure sustainable growth.

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