Berlin — With Russian opposition leader Alexei Navalny lying in an induced coma just minutes from Angela Merkel’s office in Berlin, the German chancellor is at a loss over what to do about Russian President Vladimir Putin.

The German leader — a key conduit to the West for the Russian president — is frustrated that Putin has shown no flexibility on the case, according to two officials familiar with her thinking, who asked not to be identified discussing internal deliberations...

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