"We need to examine ways to normalize relations between Europe and Russia, as one side cannot be imagined without the other," Agencia EFE cited the minister as saying.
Garcia-Margallo also said that Russia should be considered "a strategic ally, not an adversary."
He added that the crisis in Ukraine cannot be resolved by military means and the Minsk agreements must be respected.
The minister stressed that the role of the OSCE in verifying compliance with the Minsk agreements "is fundamental".
"The compliance with the ceasefire and the withdrawal of heavy weapons must be an immediate goal. The observer mission should be allowed to fulfill its duties under safe conditions," Garcia-Margallo said.