Russian President Vladimir Putin has ordered a "partial withdrawal" of troops from the border with Ukraine, the German government has said.
Mr Putin informed Chancellor Angela Merkel of the move in a telephone conversation, according to her office.
Thousands of Russian soldiers are still said to be deployed along the border.
Earlier, Ukraine condemned a visit to Crimea by Russia's Prime Minister Dmitry Medvedev and a delegation of government ministers.
A foreign ministry spokesman in Kiev said the highest-level trip to the Black Sea peninsula by officials from Moscow since its annexation by Russia was a "crude violation" of international rules.
A note protesting against the presence of an official in "the territory of another state without preliminary agreement" had been sent, he added.
Crimeans voted to leave Ukraine for Russia on 16 March, in a referendum condemned as illegal by the UN General Assembly.
Mr Medvedev said he would make Crimea a special economic zone. He also vowed to quickly boost salaries and pensions, and to improve education, healthcare and local infrastructure.
'Calmed down'
Russia's decision to annex Crimea has triggered a crisis in relations with the West.
The United States and the European Union have imposed sanctions on members of President Vladimir Putin's inner circle and other officials. Russia has retaliated with its own sanctions on US lawmakers.
US Secretary of State John Kerry has told his Russian counterpart, Sergei Lavrov, that resolving the crisis depended on Russia pulling back its troops from along Ukraine's border.
On Monday afternoon, Mr Putin informed Germany's chancellor about "the partial withdrawal of Russian troops he ordered from the eastern border of Ukraine", Mrs Merkel's office said in a statement.
"On top of that, the two discussed further possible steps to stabilise the situation in Ukraine and Trans-Dniester," it added, referring to a pro-Russian region bordering western Ukraine that proclaimed independence from Moldova in 1990.
A Kremlin statement did not mention a partial withdrawal, but said the two leaders had discussed "opportunities for international support for the restoration of stability" in Ukraine.
Mr Putin had also told Mrs Merkel that Ukraine had to enact constitutional reforms to ensure that the interests of all its regions were respected, and called for measures to end the "blockade" of Trans-Dniester, it added.
After an earlier meeting with his French and Polish counterparts, German Foreign Minister Frank-Walter Steinmeier said, "I hope we have overcome the worst escalation".
Earlier, the Russian defence ministry announced that a 15th Separate Motor-Rifle Brigade battalion had completed field exercises at the Kadamovsky range in the Rostov region, and was returning to its permanent base in the Samara region.
A motor-rifle battalion is believed to comprise about 500 men.
Sources at Nato said there had been some indications of troop movements, but that it was hard to evaluate their significance at this stage, reports the BBC's Jonathan Marcus in Brussels.
A senior Western diplomat said approximately 40,000 soldiers were in place, and that they still offered a huge potential for intimidation.
On Tuesday, Nato foreign ministers will meet in Brussels to discuss further steps to reassure allies and additional ways to help Ukraine.
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