He told Sky News television that supplying arms from Britain to Ukraine would not be the right thing to do "at the moment", but insisted London's position would be kept under review.
"This man has sent troops across an international border and occupied another country's territory in the 21st century acting like some mid-20th century tyrant," Hammond said of Putin.
"Civilised nations do not behave like that in the 21st century. We live in a rules-based society. We want the Russian people to be part of that international community.
French, German and Ukrainian leaders are planning a summit with Putin for Wednesday in a frantic bid to halt the escalating bloodshed in east Ukraine.
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The four leaders talked by phone today as part of urgent efforts to achieve a "comprehensive settlement" in the 10-month conflict between Ukrainian forces and pro-Russian rebels, Berlin said.
Hammond said Britain was not involved in the discussions as it was not practical to have a "committee of 10" talking to Moscow.
Putin "will have to trim his behaviour to reflect the decline in the Russian economy.