The United States has warned that Russia could invade Ukraine "any day" as fears rise over escalating tensions.
Over 100,000 Russian troops are stationed on the Ukrainian border, with officials from the US and other EU countries urging citizens to leave Ukraine as soon as possible.
Speaking at a press conference following talks in Moscow with German Chancellor Olaf Scholz, Russian President Vladimir Putin said he was ready to continue working with the West to de-escalate tensions over Ukraine.
He said: "We are ready to work further together. We are ready to go down the negotiations track."
Mr Putin said, "of course" Russia does not want war. But it "cannot turn a blind eye" to how Washington and NATO "freely interpret" the principle of the indivisibility of security—adding that no country should strengthen its security at the expense of others.
The news came after the Kremlin confirmed a pullback of some forces from Ukraine's borders on Tuesday.
However, it said the move was planned and stressed Russia would continue to move troops across the country as it saw fit.
Western countries have warned for months of the build-up of Russian troops around Ukraine and a potential invasion, saying any military action would be met with economic penalties.
The countries have said Moscow could impose sanctions on the Nord Stream 2, a pipeline set to double supplies of Russian gas to Europe if Russia attacks Ukraine.
Russia and the West are divided in their position on NATO's expansion along with other matters, but Mr Scholz stressed it was necessary to seek compromise.
He said: "It is our task to ... find a political understanding without anyone having to give up on their principles in the process. That is political leadership."
Other countries such as France have said that while Russia saying it will pull forces back from the border is good, they will need to see some action first.
"Words are good. We are waiting for acts. If the acts are there then that would be even better," Foreign Minister Jean-Yves Le Drian told parliament.
NATO chief Jens Stoltenberg described the current situation as the "most serious security crisis we have faced in Europe for decades" but said he welcomed signals that Russia is looking for a diplomatic solution but urged the country to stop preparing for war and start working on a peaceful alternative.
He said: "There are signs from Moscow that diplomacy should continue. This gives grounds for cautious optimism. But so far, we have not seen any sign of de-escalation on the ground from the Russian side."
He added: "Russia has amassed a fighting force in and around Ukraine unprecedented since the cold war. Everything is now in place for a new attack. But Russia still has time to step back from the brink, stop preparing for war and start working for a peaceful solution."
