At a joint news conference following his meeting with Moon, Putin condemned North Korea's tests, calling Pyongyang's missile and nuclear programme a "crude violation of UN Security Council resolutions" that "undermines the non-proliferation regime and creates a threat to the security of northeastern Asia".
The leaders of South Korea and Japan are holding talks with Putin in Vladivostok on the sidelines of a conference on economic development of Russia's Far East.
Putin reiterated his opposition to further sanctions against North Korea, saying that "the problems of the Korean Peninsula can not be resolved with sanctions and pressure alone".
"As never before everyone should show restraint and refrain from steps leading to escalation and tensions", the Russian president added.
China and Russian Federation have advocated a "freeze for freeze" plan, where the United States and South Korea stop major military exercises in exchange for North Korea halting its weapons programs.
But speaking at the closure of the BRICs summit in Beijing - which hosted the leaders of Brazil, India, China and South Africa - Putin said that while Russian Federation condemned North Korea's latest actions, imposing any kind of sanctions would be "useless and ineffective".
Nikki Haley, the USA ambassador to the United Nations, on Monday called on the Security Council to impose the strongest possible sanctions on Pyongyang, noting that "every country that does business with North Korea" should be seen "as a country that is giving aid to their reckless and risky nuclear intentions" and could face sanctions.
Russian Federation says it is strictly implementing United Nations sanctions on North Korea, but in its public pronouncements it has taken a more doveish approach than most Western countries.
The announcement and North Korea's claim that it could mount the warhead on a missile, dramatically upped the stakes in Pyongyang's standoff with the global community over its banned weapons programmes.
Moon said close coordination between the two countries has become "even more critical" in light of the North Korean nuclear issue.
He said Russians working at United Nations headquarters in NY should not be included in the overall headcount inside the U.S.
Both leaders "condemned North Korea's continued reckless and unsafe behavior" and reaffirmed the importance of close coordination at the United Nations.
While US Defense Secretary James Mattis warned of a "massive military response", US President Trump suggested a massive clampdown on trade with countries that do business with North Korea.
Russian President Vladimir Putin said that the idea of driving Pyongyang into a corner with sanctions pressure to solve the current crisis didn't make sense.
South Korea has claimed that the North is making preparations for another ICBM test.
South Korea has also been in discussions with the USA about deploying aircraft carriers and bombers to the Korean Peninsula.
Sanctions have done little to stop North Korea boosting its nuclear and missile capacity as it faces off with Trump, who has vowed to stop it from being able to hit the USA mainland.
"Russia condemns North Korea's exercises, we consider that they are a provocation".
Russian Federation believes that only acknowledgment of North Korea as a de facto nuclear power can bring the crisis under control.