BERLIN, Feb 22 (Reuters) - Germany and the European Union are in a position to decide on further sanctions against Russia if it invades Ukraine, which cannot be ruled out, Chancellor Olaf Scholz said on Tuesday.

Scholz said Russia's recognition of the two regions of Luhansk and Donetsk was not compatible with international law and endangered the sovereignty of Ukraine.

"We cannot accept this," Scholz was quoted as saying by broadcaster RTL, adding that respecting borders was important for peace in Europe.

"If everyone in Europe starts leafing through history books where borders used to be, then we have a very unsettling time ahead of us," Scholz added.

(Reporting by Riham Alkousaa Editing by Chizu Nomiyama)