German Chancellor Olaf Scholz on Saturday warned Russia that a military attack on neighboring Ukraine would have severe consequences for the Kremlin.

"A military aggression against Ukraine would be a serious mistake. There is no justification for the deployment of well over 100,000 soldiers on the Ukrainian border," Scholz told the Munich Security Conference.

"War is threatening again in Europe, and the risk is anything but averted," he added.

Scholz said Russia would pay a high price "politically, economically and geostrategically”, if it attacks Ukraine.

He, however, stressed that there was still room for a diplomatic solution of the Russian-Ukrainian crisis.

"We are ready to negotiate, however basic principles are not up for discussion," the chancellor reiterated.

Earlier this week, Scholz visited Ukraine and Russia in a last-ditch diplomatic attempt to help lower escalating tensions as Western intelligence officials warn that a Russian invasion of Ukraine is increasingly imminent.

Meanwhile, Germany has repeatedly refused to deliver arms to Ukraine amid US pressure.