In a deeply symbolic speech mixing the past with the present, the Russian leader said the 1914-1918 war should be seen as a cautionary tale.
"It serves as a reminder of what aggression and selfishness, exorbitant ambitions of heads of state and political elites prevailing over common sense can lead to," Putin said as he unveiled a monument to the slain troops.
"Those ambitions put the world's most trouble-free continent -- Europe in danger instead of preserving peace," he added.
The Russian leader, who was flanked by the head of the Russian Orthodox Church Patriarch Kirill and top officials, said history proved time and again that an "unwillingness to listen to each other" and respect each other's interests can have huge costs.
He said Russia had always sought peace but would repel any outside attack.
"Violence breeds violence," Putin said.
On the eve of World War I, "Russia did its best to persuade Europe to solve the conflict between Serbia and Austria-Hungary peacefully, without blood.
The bitter showdown between Russia and the West, which this week imposed a tough new round of sanctions on Moscow comes as the world this year marks the centenary of the outbreak of hostilities in World War I.
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