Barack Obama has threatened Moscow with further sanctions if they continue to support the pro-Russia militia destabilising Ukraine.
The US President warned his counterpart: "Mr Putin's decisions are not just bad for Ukraine, over the long term they're going to be bad for Russia.
"What I have said consistently is that each time Russia takes these kinds of steps that are designed to destabilise Ukraine and violate their sovereignty, that there are going to be consequences."
Mr Obama's warning comes ahead of talks between Ukraine, Russia, the US and the European Union later in Geneva.
US Secretary of State John Kerry will meet with Russian Foreign Minister Sergey Lavrov, Ukrainian Foreign Minister Andriy Deshchytsia and the EU foreign chief Catherine Ashton.
According to a senior US official, the diplomatic meeting in the Swiss city will mark Kiev's final attempt to engage with Russia before Moscow is hit with additional economic sanctions.
In recent days tensions have increased with pro-Russian separatists stepping up activities in the east of Ukraine.
Armed men stand guard outside a building occupied by pro-Russia militia The well-armed militia has seized armoured vehicles and weapons from Ukrainian forces and occupied a number of government buildings.
Nato has said it is taking immediate steps to boost its military presence in eastern Europe in response to what it calls Russian "aggression" in Ukraine.
With tens of thousands of Russian troops deployed along the border with Ukraine, Nato has also agreed to deploy more air and sea forces, as well as increase the readiness of land forces, in the Baltic and eastern Mediterranean.
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