جَازَتِ الصَّلَاةُ فِيهِ، وَالْوُضُوءُ مِنْهُ
Translation: Prayer is permissible in it, and wudu may be performed using water from it.
Fi-hi concerns wearing or using purified leather; minhu concerns water held in a vessel made of such leather, not using leather itself instead of water.
Once the hide has been purified, it does not contaminate clothing or water by mere contact, subject to the stated exceptions.