Updated

Canadian Prime Minister Stephen Harper says Russia won't return to the Group of Eight industrialized nations unless President Vladimir Putin fundamentally changes course.

After talks Thursday with German Chancellor Angela Merkel, Harper said despite "all of our efforts to make Mr. Putin a partner, he has not desired to be a partner, he's desired to be a rival, and that's just a reality we have to come to terms with."

Russia was ejected from the G-8 indefinitely this week in response to its annexation of Crimea.

Harper says he doesn't "see any way of a return of Mr. Putin to the table unless Russia fundamentally changes its course, its orientation toward the world, and its values and behaviors."

Merkel says Europe will increase sanctions if Russia escalates the situation.