Vladimir Putin attempted to reassure the Russian people over the state of the economy, their wages and pensions in his annual marathon phone-in yesterday, a sign that the Kremlin is trying to focus its message inwards after a dramatic year in foreign policy.

In a departure from earlier call-ins, Mr Putin focused most of the first hour on the economy that began with a rose-coloured view on the macroeconomic situation and continued with a detailed analysis of dairy production.

While Mr Putin acknowledged that real wages had fallen over the past year and that inflation had remained high, he argued that the recent strengthening of the rouble and Russian stock market were signs that the government was implementing the correct economic policy. He claimed that the worst of the crisis had passed and that there would be a full recovery within two years.