Germany's Gabriel says in Putin's hands whether we return to Cold War

German Chancellor Angela Merkel sits next to Economy Minister Sigmar Gabriel before addressing the Bundestag, the lower house of parliament, at the Reichstag in Berlin March 13, 2013. REUTERS/Tobias Schwarz

BERLIN (Reuters) - German Vice-Chancellor Sigmar Gabriel said it was in Vladimir Putin's hands whether the Cold War era returned and a weekend referendum in Crimea, likely to violate Ukraine's territorial integrity, would bring a second stage of EU sanctions on Moscow.

"Germany is doing everything to prevent a third round of sanctions against Russia," he said, but added that at the same time if diplomacy failed, Europe should not hesitate to impose a third round of massive economic sanctions of Russia.