Russia has never engaged in hacking at the "state level, " Putin said at the Konstantinovsky Palace, adding that some computer attacks may be camouflaged to make them look like Russians were behind them.
"You and I, you and I personally", Putin told Kelly, according to a partial transcript released by the network.
Kelly asked Putin if he was holding any kind of damaging information about Trump, either involving Trump's finances or a visit Trump made to Russian Federation as a businessman.
Two administration officials say President Donald Trump is leaning against invoking executive privilege to try to block fired FBI Director James Comey from testifying about their private conversations.
"Do you have something damaging on our president?' Ms.Kelly asks the Russian leader, who is listening to a translator through an earpiece".
The clip aired on NBC Nightly News on Friday, and the full interview will air on Sunday on the premiere episode of Sunday Night With Megyn Kelly.
Flynn was paid $45,000 to speak at the gala, and was placed in the "seat of honor" next to the Russian president.More news: Mickelson to miss US Open for daughter's graduation
More news: Chelsea striker to seal move to Newcastle United this weekend
More news: White House Communications Director Resigns
As far as the findings of US intelligence agencies, Putin said, "They have been misled".
"Clearly, it would be very, very troubling if the president of the United States is interfering in investigations that affect potentially the president and his closest associates", said Sen.
Putin told Kelly that he doesn't know Flynn, even though he sat next to him at a dinner in Moscow in 2015.
Putin also continued to deny that Russian Federation was involved in any way with the hacking of the Democratic National Committee's email servers past year.
The remarks were the latest in a series of denials from Moscow that have had little impact so far on a political crisis in the United States over potential links between Russian Federation and Trump's inner circle. Do you think we're gathering compromising information on all of them right now or something? "Are you all - have you all lost your senses over there?" I didn't even really talk to him...
"I haven't seen, even once, any direct proof of Russian interference in the presidential election in the United States", he said. "You created a sensation out of nothing, and. you turned it into a weapon of war against the current president". That's the extent of my acquaintance with Mr. Flynn. Putin noted that executives from perhaps 100 American companies were now in Russian Federation. In fact, he said that US hackers could have been the ones to frame Russian Federation. "Every action has an equal and opposite reaction".