"It is true that if, in fact, diplomacy fails, what I've asked my team to do is to look at all options. What other means can we put in place to change (Russian President) Mr (Vladimir) Putin's calculus? The possibility of lethal defensive weapons is one of those options that's being examined," Obama said at a White House news conference with German Chancellor Angela Merkel.
"But I have not made a decision about that yet. I've consulted with not just Angela but will be consulting with other allies about this issue. It's not based on the idea that Ukraine could defeat a Russian army that was determined," he said in response to a question.
Obama said the US, Germany and their other international partners are continuing to push for diplomatic solutions.
"Russia obviously has an extraordinarily powerful military and you know, given the length of the Russian border with Ukraine, given the history between Russia and Ukraine, expecting that if Russia is determined that Ukraine can fully rebuff a Russian army, has always been unlikely," he said.
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"But it has created a measurable negative impact on the Russian economy. And that will continue. My hope is that through these diplomatic efforts, those costs have become high enough that Mr Putin's preferred option is for a diplomatic resolution," he said.
Speaking in German, Merkel said she and the French president have decided to make one further attempt to make progress through diplomatic means.
"We have the Minsk agreement. The Minsk agreement has never been implemented, quite the contrary is true. The situation has actually worsened on the ground," she said.