As reported by Censor.NET citing Al Jazeera, the leaders have confirmed their commitment to the Minsk agreement for resolving the conflict in eastern Ukraine.
"Ukraine should be given access to its own state border," Merkel said, stressing the need of holding local elections in the separatist regions that would lead to "a legitimate leadership within Donetsk and Luhansk".
"By implementing the Minsk agreement we want to come to a position where we can actually end the sanctions against Russia [imposed for its role in the conflict and for annexing Ukraine's Crimea Peninsula in 2015]," she said speaking after meeting with Putin in the Russian city of Sochi on Tuesday.
Merkel urged Putin to do everything in his power to achieve full cease-fire between Russia-backed rebels and the Ukrainian government forces.
Merkel expressed concern to Putin about reports of violence against homosexuals, especially in Chechnya, urging the Russian president to "use his influence" to put an end to the abuse.
She also stressed the importance of protecting the freedom of people to assemble and express themselves in public.
"The possibility of the right to demonstrate is a part of civil society," she said, reacting to the detention of hundreds of protesters in Moscow in recent weeks at anti-government demonstrations.
Related materials: Russian aggression against Ukraine