So Michael Flynn spoke to the Russian Ambassador in December* presumably about the sanctions President Obama imposed on Russia. It is assumed that he was telling the Russian Ambassador not to worry, that when they took office the sanctions would be taken care of. And recall that Putin did not have any outrage over the sanctions.
As a private citizen at the time, it was illegal for Flynn to discuss such things with a foreign government. So Flynn lied when he first said he didn't do it and then that he didn't remember.
I can believe that Flynn lied to Vice President Spence, but Trump? Come on, there are two possibilities: Either (1) Flynn asked Trump if he should call the Russian ambassador and tell him to cool it over the sanctions, or (2) Trump just told Flynn to call the Russian Ambassador. and tell him to cool it over the sanctions.
For awhile it looked like Michael Flynn might "take one for the President" and be dumped by Trump. Wishful thinking. My bet is that Flynn is in good shape with President Trump (in like Flynn) and Kellyanne Conway has said as much today.
So Putin will still have at least two assets running the U.S. Government.
Note Added (Feb. 14, 2017): Well, Flynn is out after all.** shows what a prognosticator I am.
* http://www.bbc.com/news/world-us-canada-38964079\** https://www.washingtonpost.com/blogs/right-turn/wp/2017/02/14/flynn-is-out-can-it-get-any-worse/?utm_term=.2464f892f512
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