In a 90-minute telephone conversation, Obama urged the Russian leader to pull forces back to bases in Crimea.
Putin responded by saying that Moscow reserves the right to protect its interests and those of Russian speakers in Ukraine, the Kremlin said.
Meanwhile, Canada has recalled its ambassador to Moscow for consultations.
Canadian Prime Minister Stephen Harper said he was also suspending Canada’s preparations for a G8 summit in the Russian resort of Sochi in June.
Ukraine says it has put its army on full combat alert after Russia’s parliament approved the deployment of Russian troops.
Acting President Olexander Turchynov said he had also stepped up security at key sites, including nuclear plants.
Obama, the White House said, told Putin that the appropriate way to address any concerns “is peacefully through direct engagement” with the Ukrainian government and international mediating bodies.
“President Obama expressed his deep concern over Russia’s clear violation of Ukrainian sovereignty and territorial integrity,” the White House said.
Obama told Putin his actions were a “breach of international law, including Russia’s obligations under the UN Charter, and of its 1997 military basing agreement with Ukraine”, a statement added. Click to signup for FREE news updates, latest information and hottest gists everyday
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