PATIENCE

Both have spoken about ending the enmity that has dragged U.S.-Russia relations to their lowest ebb since the Cold War.

Wouldnt it be nice if we actually got along with people? Wouldnt it be nice if we actually got along, as an example, with Russia? I am all for it, Trump told a news conference in July last year.

Trump is under intense scrutiny at home from critics who say he was elected with help from Russian intelligence an allegation he denies and that he is too ready to cut deals with a country that many of his own officials say is a threat to U.S. security.

Putins spokesman Dmitry Peskov, said the Russian leader would use the call to congratulate Trump on taking office and to exchange views on U.S.-Russian ties.

Asked by reporters if Ukraine would come up, Peskov said: This is the first telephone contact since President Trump took office, so one should hardly expect that (it)...will involve substantive discussions across the whole range of issues.

Well see, lets be patient.

If Putin and Trump can establish a rapport, it could pave the way for deals on Ukraine and Syria, two sources of friction during the administration of Barack Obama.

For the Russian leader, there is much to gain. Putin is expected to run for re-election next year, but is hampered by a sluggish economy. A softening or removal of sanctions would allow Western investment and credit to flow in, lifting growth and strengthening Putins election prospects.

Any move by Trump to ease sanctions would create a dilemma for the European Union, which has its own set of sanctions against Russia linked to the Ukraine crisis.

Some governments in Europe are sympathetic with Trumps stance and keen for relief from sanctions that are hurting trade with Russia. Others in the bloc believe Moscow has not met the conditions for the sanctions to be lifted.

Merkel, who faces a re-election battle, has invested considerable political capital in keeping the EU aligned behind the sanctions.

A German diplomat told Reuters last month: If Trump lifts the sanctions, I fear the consensus in Europe would crumble.

Merkel and French President Francois Hollande met in Berlin on Friday, underlining the challenges for European unity in the face of a new U.S. president who has promised to shake up the status quo in international affairs.

Lets say it honestly, there is the challenge posed by the new U.S. administration, regarding trade rules and what our position will be on managing conflicts in the world, Hollande, who will leave office after an April-May election, told reporters.

(Additional reporting by Noah Barkin, Joseph Nasr and Andrea Shalal in Berlin in Berlin, Polina Devitt and Denis Pinchuk in Moscow, and Eric Walsh in Washington; Editing by Richard Lough)