Ukraine's President Volodymyr Zelensky has bestowed Germany's Chancellor Angela Merkel with the country's highest honor for her work trying to resolve the separatist conflict in eastern Ukraine.

In her last meeting with Ukraine's president as Chancellor, she attempted to reassure Zelensky that she would continue to help bring about a resolution to the conflict in the disputed Donbas region before she steps down in September.

At a meeting with Russia's President Vladimir Putin on Friday, she admitted progress by the four "Normandy Format" countries had been insufficient to produce the desired outcomes in Ukraine, despite all parties agreeing to the Minsk agreement, which outlines how the fighting should be resolved.

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At a press conference on Sunday, Merkel also attempted to allay Ukraine's fears that the instrumental Nord Stream 2 gas contract it has with Russia known as Nord Stream 2, will not be extended. 

"Gas cannot be used as a weapon," Merkel said in Kyiv. "We are for new sanctions if Russia uses this gas pipeline as a weapon," she added without going into detail.

That's particularly important for Ukraine who stands to lose $2 billion in transit revenues if Moscow cuts supplies through Ukraine. The Nord Stream 2 pipeline, which circumvents Ukraine, is due to be operational by the end of the year.

The Nord Stream 2 project has also been criticized by the U.S. for potentially increasing Europe's reliance on Russian energy exports and weakening the security of Ukraine. Despite attempts by the U.S. to sanction companies and individuals responsible for building the project, it is due to be completed by the end of August.

But when Merkel brought up the extension of a gas transit contract through Ukraine with Russian President Vladimir Putin, he only went so far as saying Russia is "ready to make that commitment," leaving all countries unsure whether such an extension to the contract will actually be signed.

Meanwhile, Ukraine's leaders worry that without the gas transit agreement extension, the country will find itself more vulnerable to what Ukraine calls Russian "aggression" and that Russia could behave more assertively towards Ukraine.

Merkel has attempted what she calls a "pragmatic" compromise by drafting a non-binding agreement with the U.S. to impose further sanctions against Russia if it displays so-called "aggression" towards Ukraine. And in addition, Germany will offer Ukraine hundreds of millions of dollars in funding for renewable energy projects to make up for lost transit fee revenue and help the country transition from natural gas.