17.09 Mr Obama says two issues dominated their meeting today - Russia's aggression in Ukraine and the fight against Islamic State.
Mr Obama says it is clear Russia "violated" September's Minsk agreement.
"We continue to encourage a diplomatic resolution to this issue," he says, adding that Russia cannot redraw borders "at barrel of a gun".
Mr Obama says the US will continue to work with the IMF to provide financial support and bolster Nato's presence in eastern Europe.
"Even as we continue to work for a diplomatic solution, we are making it clear that if Russia continues on its current course... Russia's isolation will only worsen both politically and economically," he says.
Mr Obama says it is clear Russia "violated" September's Minsk agreement.
"We continue to encourage a diplomatic resolution to this issue," he says, adding that Russia cannot redraw borders "at barrel of a gun".
Mr Obama says the US will continue to work with the IMF to provide financial support and bolster Nato's presence in eastern Europe.
"Even as we continue to work for a diplomatic solution, we are making it clear that if Russia continues on its current course... Russia's isolation will only worsen both politically and economically," he says.