Joe Biden, 79, and Vladimir Putin, 69, went head to head in a video call as the relationship between the two nations began to sour. War fears have surged as more than 90,000 Russian troops are believed to have gathered near Ukraine’s borders.
The movement has strained already tense relations between Russia and the US.
After the call the 46th US president said: “I made it very clear, if in fact [Putin] invades Ukraine, there will be severe consequences.
“Economic consequences like none you’ve ever seen.”
Mr Biden also stated the US would increase American presence in NATO countries.
READ MORE: Russia invasion of Ukraine ‘imminent’ as Putin exploiting NATO
However, President Putin’s foreign affairs adviser Yuri Ushakov dismissed the sanctions threat during a conference call with reporters.
He said: “While the US President talked about possible sanctions, our President emphasized what Russia needs.
“Sanctions aren’t something new, they have been in place for a long time and will not have any effect.”
In a brief clip broadcast by Russia state television, the two Presidents offered friendly greetings to each other.
“I welcome you, Mr President,” the Russian leader said.
“Good to see you again!” Biden replied with a chuckle.