BMW’s Chief Financial Officer, Friedrich Eichiner, said any worsening of the crisis between Ukraine and Russia, one of the carmaker’s fastest growing markets, would jeopardize the company’s outlook, while the group’s CEO, Norbert Reithofer, urged for a diplomatic solution to the conflict.

Although Russia accounted for around 2 percent of BMW’s group sales of 1.96 million vehicles in 2013 it was among its fastest growing markets, rising 12 percent to a record 44,871 vehicles amid overall sales that fell 6 percent in the same period.

Eichiner said the company was aware of potential risks from an escalation of the conflict.

“There are risks in the Russian business. We see risks in currency. The the ruble has weakened. So long as the crisis does not escalate then we stick to our guidance. If it does, all our statements about our outlook that we made today need to be questioned,” Eichiner said.

The CFO said the group was ”closely monitoring the situation.”

On Tuesday, a Ukrainian serviceman was killed in Crimea when a base still held by Kiev came under attack in the main town of Simferopol, the first death on the peninsula from a military clash since Russia seized control three weeks ago. Russian President Vladimir Putin signed an accord on Tuesday setting in motion Crimea’s accession to Russia 60 years after the Black Sea peninsula was made part of Ukraine.

UK Prime Minister David Cameron has vowed to push European leaders to agree on additional measures against Russia when they meet today in Brussels.

BMW CEO Reithofer said “a diplomatic solution has to be found” in response to a question about the crisis between Russia and the Ukraine, adding that the conflict over Crimea needs a negotiated settlement rather than military involvement.

BMW’s board member for sales and marketing, Ian Robertson, said in the longer term he sees potential in the Russian market.

Last year, Russian sales fell to 2.78 million units, bringing to an end three years of double-digit growth in the market and delaying the country’s move to succeed Germany as Europe’s No. 1 market.