From in Mirian Elder, Moscow
Russia's Prime Minister Vladimir Putin has taken to the airwaves to assuage his people's fears over the country's rapidly accelerating financial crisis, acknowledging that tough times lay ahead but that Russia would survive with "minimal losses".
In a marathon session that lasted more than three hours, broadcast live on radio and television, Mr Putin took dozens of questions from around the country, in a tradition he started eight years ago as president. Only once did he mention the name of the current President, Dmitry Medvedev, fuelling the view that Mr Putin remains the country's most powerful leader.
At the same time, Mr Putin ruled out early presidential elections, moving to squash speculation that he would soon return to the Kremlin after the constitution was changed to lengthen the presidential term from four years to six. "The next presidential election will take place in 2012," Mr Putin said. "For now, everyone must fulfil his duties in his place."
His sharp, blue eyes staring straight into the camera for the length of the broadcast, Mr Putin used the annual opportunity to assure viewers that the state was using all means necessary to tackle the financial crisis, which has ravaged the country's bourses and has begun to lead to mass lay-offs.
"I have to say directly that this will be a difficult period for the world economy, and ours too," he said. "We must be organised and morally prepared, in both a financial and political way." The problems facing Russia today do not compare to previous crises, he said, alluding to the chaotic 1990s. "Today, the country is in a totally different state, we have every chance of getting through this complicated period with minimal losses to the economy and our citizens."
Mr Putin went to great pains to constantly repeat that social services would not be affected as the country enters a period of slow growth, following a five-year, oil-fuelled economic boom that has provided the basis for his overwhelming popularity.
Neither the government nor major state-run firms planned to revisit investment programmes, he said. "All we've planned in the social sphere, including pensions, will be fulfilled."
Several callers from around Russia expressed fears for the future, as factories begin cutting production or shutting down altogether amidst decreased global demand for Russia's traditional natural resources. Mr Putin said unemployment benefits would be paid, and justified a government decision to release state bailout funds of more than five trillion roubles (£122bn) through state-run banks. Insiders and analysts have complained that the money is not filtering through the system.
The country has begun quickly depleting its reserves, built up over five years of rising oil prices, to battle the financial crisis, including heavy support of the rouble. Mr Putin ruled out a sharp devaluation of the currency, a move that would prove highly unpopular among his citizens. He also said the government might take stakes in companies should the crisis warrant it, a move long feared among liberals here.
Mr Putin, who oversaw sharply deteriorated relations with the West, expressed hope that ties with the United States would improve under the new administration of Barack Obama. He praised Nato's decision this week to put off membership plans for Ukraine and Georgia, and hinted at "positive signals" from the US President-elect. "If these aren't only words, but translate into real politics, then of course our reaction will be adequate, and our American partners will feel it right away," he said.
But Mr Putin kept up tough rhetoric on Georgia and Ukraine, warning Kiev that Moscow would cut gas supplies if it failed to settle its debt with the state-run Gazprom. He vowed to protect the Georgian breakaway regions of Abkhazia and South Ossetia, referring to the country's August war as a "bloodbath" initiated by the Georgians.
Panel: questions put to Putin by Russians
Q: I have two questions. As New Year approaches, we need to know where to buy a tree. Second, will Ukraine pay for its gas?
"Every family who wants to have a tree, can have it, a natural or a fake one. More and more people are using fake trees. It's an individual choice. And our Ukrainian partners haven't settled their debt yet, $2.5bn, this isn't small money, for Gazprom or the country. We know Ukraine is having bigger problems than Russia, for example, as a result of the financial crisis. What to do? Trade doesn't happen for free, you have to pay ? If you go to Germany and say, ‘I want a Mercedes for free'. Who will give it to you?"
Q: Vladimir Vladimirovich, I would _really like a new dress for New Year. Please fulfill our wishes, thank you.
Little Dasha, I think that you and other children, not only in Yakutia but in the whole country, should see in the New Year well and adults should do everything to see these wishes are fulfilled. Regarding your dress and other presents on New Year's, I think it would only be right if you thought not only about what you needed for New Year, but what Grandma needs. I invite you and your sisters and Grandma all together to come to Moscow, to one of the New Year's trees, and we'll deal with presents here."
Q: Would you like to see Saakashvili hung by one of his body parts? [Mr Putin was reported to have told President Sarkozy of France that the Georgian leader should be "hung by the balls".]
"Why just one part? But seriously, we all know the tragic news in other parts of the world, in Iraq for example, where American troops went under the false pretence of weapons of mass destruction. They didn't find the weapons, but they hanged the leader. I believe it is up to Georgia's people to decide what kind of responsibility must be borne by those politicians who led to these harshest and tragic consequences."