The air-launched missile, jointly developed by Germany and Sweden, can reach targets up to 500 kilometres (311 miles) away.
Outgoing chancellor Olaf Scholz had ruled out sending them to Kyiv, but Merz said on Sunday he was open to the idea provided Germany had agreed with its European partners.
"He is agitating on the side of toughening his position and in favour of various steps that can -- and will -- inevitably lead to a further escalation of the Ukraine situation," Kremlin spokesman Dmitry Peskov said of Merz.
"Unfortunately, European capitals are really not inclined to look for ways of reaching peace talks, they are rather inclined to further provoke the continuation of the war," Peskov added.
Russia has long criticised Western countries for supplying long-range weapons to Ukraine, arguing Kyiv uses them to strike targets deep inside Russian territory.
Both the United States and the UK have supplied long-range missiles to Ukraine.
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