Obama Asks Putin to 'De-Escalate' Situation in Ukraine as Russian Leader, Poroshenko Jointly Urge 'End to Bloodshed'

Russia and Ukraine appeared to have made a long-awaited breakthrough in efforts to resolve a damaging crisis in their relations after conciliatory talks on the sidelines of Friday's D-Day anniversary ceremonies.

Vladimir Putin and Ukrainian president-elect Petro Poroshenko embraced the spirit of the day that signaled the end of World War II by announcing they would jointly seek a ceasefire in the conflict between government forces and pro-Russian rebels in southeastern Ukraine.

The two leaders shook hands and talked for a quarter of an hour in a meeting brokered by French President Francois Hollande before a lunch of world leaders attending the D-Day events.

A series of positive commentaries on the encounter followed from both Kiev and Moscow, raising hopes of a peaceful de-escalation of a crisis that erupted when Russia annexed Crimea in March and sparked a damaging chill in its relations with western powers.

The rift with the West looked to be healing too as Putin had his first face-to-face encounter with U.S. President Barack Obama. U.S. officials styled the meeting as an informal chat but Putin portrayed them as "substantial" discussions.

Putin told Russian TV that Poroshenko had the "right approach" to ending the crisis while the Ukrainian president-elect, who is due to be inaugurated on Saturday, said he believed there was a "good chance" of a successful dialogue with Moscow.

Putin revealed that the two countries were close to a deal on the vexed issue of Russian gas supplies to its former Soviet partner.

Russia has been accused of holding Ukraine to ransom as a result of energy giant Gazprom's doubling of the price of gas it supplies to the country and its demand for a rapid settlement of arrears.

Putin's spokesman Dmitry Peskov said the two men had urged "the soonest possible end to bloodshed in southeastern Ukraine, and to military operations on both sides -- both by the Ukrainian armed forces and by supporters of the federalization of Ukraine.

"They also confirmed that there was no alternative to resolving the situation with peaceful political methods."

It was the first meeting between the two leaders since pro-Western chocolate tycoon Poroshenko won Ukraine's presidential election on May 25.

Russia indicated it would send an ambassador to Kiev for Poroshenko's investiture in what will be seen as de facto recognition of the new president's legitimacy.

A ceasefire could be harder to deliver as, for it to be accepted by the rebels, there would have to be some sort of pullback by Ukrainian government forces which Kiev would regard as an infringement of its right to police all of its sovereign territory as it sees fit.

Later on Friday, Putin said his meetings with Western leaders in France were positive and described talks with his Obama as "substantial."

"I think the exchange of views was very positive," Putin said in remarks broadcast by Russian television from France.

He added that he spoke on two occasions with Obama, "in a rather substantial manner."

Putin was also positive about Ukraine president-elect Poroshenko.

"I cannot but welcome the position of Poroshenko on the necessity to end the bloodletting immediately in the east of Ukraine," he said.

"I cannot say for sure how that can be implemented in practical terms, but overall it seemed to be to be the right approach," he said.

"He has a plan, which -- it's probably better to ask him. He explained it quickly to me," he added.

"Ukraine must demonstrate its good will. The repressive operation must be stopped.

"I hope that will happen, and if that happens, the conditions would be there for the development of our relations in other areas, including economic."

Putin in particular raised the issue of Russian gas deliveries to Ukraine, saying that the two parties were close to a deal.

"No, I did not discuss gas prices with Poroshenko, but I know that Gazprom and its Ukrainian counterpart are close to a definitive deal," he said.

"We do not exclude making a gesture to the Ukrainians, by lending them some support in the case that they repay their debt," he added.

Ukraine's third "gas war" with Russia in less than a decade erupted when Moscow nearly doubled the price it charges its neighbor for the fuel.

Kiev accused Moscow of "economic aggression" and refused to cover a bill that Russia puts at $5.17 billion (3.79 billion euros).

Russian gas transiting through Ukraine supplies about 15 percent of European needs.

For his part, Poroshenko said: "The dialogue has begun, and that's a good thing."

"A Russian representative will travel to Ukraine, and we will discuss with him the first steps towards a plan (to resolve) the situation... We have a good chance of implementing it," he added.

The talks will take place on Sunday, he said.

Poroshenko, who will be sworn in as president on Saturday, said he expected Russia to recognize his election after a "short delay."

Poroshenko shook hands with Putin but he emphasized that the first top-level encounter since the start of the crisis had been tough.

"The talks weren't easy and the reaction when I raised the issue of Crimea wasn't pleasant," he said.

Russia carried out an annexation in March of Crimea, a peninsula on the northern shore of the Black Sea, after a three-week occupation and a referendum considered illegal by the international community.

Since mid-April Ukrainian forces have fought an armed uprising in the east of the country that has so far cost about 200 lives.

Russia has been accused by Ukraine and the West of offering clandestine support to the insurgents.

Meanwhile, Obama said Friday that he personally told Putin he must de-escalate tensions in Ukraine or face deeper international isolation, according to a U.S. official.

"President Obama underscored that the successful Ukrainian election provides an opportunity that should be taken," said Ben Rhodes, a deputy U.S. national security adviser. 

"President Obama made clear that de-escalation depends upon Russia recognizing President-elect Poroshenko as the legitimate leader of Ukraine, ceasing support for separatists in eastern Ukraine, and stopping the provision of arms and materiel across the border."

Rhodes said Obama noted Poroshenko's commitment to pursue reforms to ensure that the rights and interests of all Ukrainians are respected, and urged Russia to work immediately with the government in Kiev to reduce tensions."

"President Obama made clear that a failure to take these steps would only deepen Russia's isolation."

The readout offered no details of the atmospherics or the tone of the talks, the first direct encounter between the two leaders since the Ukrainian crisis erupted.

But there was a hint of a carrot for Putin of better relations with Washington if he meets U.S. demands.

"If Russia does take this opportunity to recognize and work with the new government in Kiev, President Obama indicated that there could be openings to reduce tensions," Rhodes said.

Tensions in southeastern Ukraine have mounted in recent days with the government admitting on Thursday that it had lost control of three border posts that were being routinely attacked by the rebels.

On Friday, one police officer was killed and two others injured in a mortar attack in Slavyansk, the epicenter of rebel activity in the region.

The Russian president has repeatedly emphasized that he does not control the rebels while the Western powers accuse Moscow of pulling their strings.

According to French Foreign Minister Laurent Fabius, Putin admitted he could have a "certain influence but not total influence" over events in Ukraine.

If there is a ceasefire and a significant de-escalation of the crisis, it will be a major coup for Hollande and the gastro-diplomacy that has brought Putin in from the cold.

Friday's deal was done before a slap-up meal of John Dory fish, veal and pear and caramel biscuits. On Thursday evening, the Socialist leader had to race through a dinner with Obama at a French restaurant so that he could meet Putin for a late supper at his Elysee palace.