Germany will not supply weapons to Ukraine government forces, German Chancellor Angela Merkel said on Monday.

Instead, Germany prefers to seek a diplomatic solution to the fighting between Kiev government troops and the pro-Russian rebels in eastern Ukraine

"It is my firm belief that this conflict cannot be solved militarily," Merkel said after a meting with Hungarian Prime Minister Viktor Orban in Budapest. Unity in all the steps taken by the EU thus far is "a high priority," she said after the meeting. 

Merkel also said a new ceasefire agreement between the government in Kiev and the pro-Russian separatists should be implemented immediately to halt the recent surge in fighting.

The conflict has claimed more than 5,100 lives since April 2014 and displaced 900,000 people.

Orban said that for Hungary only a solution that leads to peace in eastern Ukraine was acceptable. He also ruled out any arms deliveries to the Ukrainian government forces.

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