The German Chancellor discussed the situation in the region with the leaders of the three Baltic States.

German Chancellor Olaf Scholz warned Russia of “serious” economic and political consequences if it intends to strengthen its military aggression against Ukraine, adding that Germany and her allies are ready to dialogue with Moscow and want peace.

While Russia is conducting military exercises in Belarus and on the Black Sea, the confrontation is causing increasing fears of war in Europe, which will lead to a sharp increase in energy prices throughout the continent, which depends on Russian gas supplies.

“What is at stake now is nothing more than the prevention of war in Europe. We want peace,” Scholz said at a press conference after his meeting with the leaders of the Baltic States in Berlin. The Chancellor called on Russia to de-escalate the situation.

“Russia’s further military aggression against Ukraine will have very serious political, economic and strategic consequences for Russia,” he said. “At the same time, we are ready for serious negotiations with Russia, for a dialogue on European security issues.”

The Kremlin rejects accusations by the United States and its allies that Russia is planning an invasion of a neighboring country.

Scholz met with Estonian Prime Minister Kaja Kallas, Lithuanian President Gitanas Nauseda and Latvian Prime Minister Krisjanis Karins, leaders of the Baltic States who want Germany to play a more important role in the alliance’s actions to strengthen the defense of neighboring states with Russia.

The leaders discussed “real assistance to Ukraine,” including economic, financial, as well as “moral” support, Nauseda said in a video message after the meeting.

“Scholz is well versed in the situation, takes seriously the threats that arise on the border with Ukraine, and undoubtedly sees how they are related to the security of the Baltic region,” the Lithuanian president said.

Before the meeting, Latvian Prime Minister Karins called on Germany to take a “leading role to lead the European Union and NATO in these difficult times.”

“We are focused on supporting Ukraine,” said Kaja Kallas, the head of the Estonian government. “De-escalation cannot take place at gunpoint and at the expense of Ukraine.”

Scholz is under pressure from the United States to close the newly built pipeline to deliver Russian gas to Germany in the event of a Russian military invasion of Ukraine.

Scholz did not mention the “Nord Stream-2” gas pipeline project in the context of the consequences that, according to him, Russia will face. Earlier, he said that all possible options are being considered.