"Nobody should have exaggerated expectations: We are not negotiating the end of the war there," Scholz said in an interview with the German news magazine Stern.
"At best, it's the start of a process that could lead to direct talks between Ukraine and Russia. In Switzerland, it will be about the safety of nuclear power plants, grain exports, the issue of prisoner exchanges and the necessary taboo on the use of nuclear weapons. Once again, this is all still in its infancy," Scholz said.
Following his appeals for more arms deliveries, the chancellor was disappointed with the commitment of European countries to the war in Ukraine. It was "frankly still not enough," he said.
"That is depressing because Ukraine urgently needs more air defence systems. Putin obviously wants to destroy Ukraine's infrastructure," the German leader said.
Scholz also anticipates further attempts by Russia to exert influence in Germany.
"The Federal Foreign Office has just temporarily recalled the German ambassador from Moscow - as a clear signal to Russia," he said.
"But we shouldn't fool ourselves: Ahead of the upcoming European elections this year and the German parliamentary elections next year, Russia's attempts to exert influence will tend to increase. The authorities must be very vigilant," he said.
The ambassador was recalled earlier this month in response to a Russian cyberattack on the governing centre-left Social Democratic Party (SPD) last year.