German Chancellor Angela Merkel attends a session of the World Economic Forum (WEF) annual meeting on January 22, 2015 in Davos. Fabrice Coffrini | AFP | Getty Images

Angela Merkel, the German Chancellor, has maintained her forceful line on Russia's actions in eastern Ukraine, despite the economic impact on Germany of sanctions against Russia. "There is one thing that we hold very important – the elementary principles of the European Union were violated," Merkel, who was born and brought up in East Germany under Soviet Union influence, told the World Economic Forum in Davos on Thursday.



Her words may silence some of the speculation in the media that others members of her cabinet would prefer a softer line on towards Moscow's support of separatists in Eastern Ukraine. Violence in Donetsk and Luhansk, the disputed parts of eastern Ukraine, has escalated this week. Sanctions imposed against certain Russian businesses and individuals, following the crash of Malaysia Airlines Flight MH17 over eastern Ukraine, have contributed to Russia's current economic problems. Read MoreRussian business is braced for 'much worse'

Merkel also addressed what she called the "global fight against Islamic terror" in a wide-ranging speech. "This year has started with a bang that shook us to the core with that terrible attack," she said, speaking of recent terrorist incidents in France. "Those matters we have taken for granted need to be fought for time and time again."