Medvedev sworn in as Russian president

The eight-year presidency of Vladimir Putin came to an end today as his successor Dmitry Medvedev was sworn into office in a solemn ceremony in the Kremlin's throne room.

Medvedev, a 42-year-old former corporate lawyer and longtime Putin ally, stressed freedom and the rule of law in his first remarks after taking the oath of office and receiving a gold chain of double-headed eagles symbolising the presidency.

Related articles

• Mary Dejevsky: Take heart from the city that shaped Medvedev
• Fraser Cameron: Europe must be confident in talks with new President
• Leading article: A new leader, and the long shadow cast by Mr Putin
• Search the news archive for more stories

"I believe my most important aims will be to protect civil and economic freedoms," he told the 2,000 guests at the inauguration, broadcast live on television.

"We must fight for a true respect of the law and overcome legal nihilism, which seriously hampers modern development."

The new leader, who arrived at the Kremlin alone in an armoured black stretch Mercedes limousine flanked by 11 motorcycle outriders, inherits a booming economy fuelled by high oil prices - but also a sobering set of challenges.

They include rampant corruption, rising inflation, a falling population, sickly industry and agriculture and increasingly tense relations with former Soviet neighbours and the West.

Mr Putin is almost certain to be named as Prime Minister, and many analysts expect him to continue calling the shots.

Most analysts expect Mr Medvedev to continue, at least initially, the domestic and foreign policy course charted by Mr Putin. "There's an expectation among investors that there will be more of the same," said Roland Nash, head of research at Renaissance Capital in Moscow. "Anything that isn't will be a surprise."

Mr Medvedev has based his whole presidential campaign on continuing Mr Putin's legacy and when first tipped for the job, in December, immediately said he would ask Mr Putin to become Prime Minister. This played well in Russia, where Mr Putin remains a popular leader because of increased economic prosperity during his rule and the perception that Russia has again become a major world power. In a survey last week, just 8 per cent of respondents felt there had been more negative than positive aspects to Mr Putin's eight years in charge.

Mr Putin is expected to continue wielding enormous power in an expanded prime ministerial role, while he heads the dominant pro-Kremlin political party United Russia, a post giving him direct control over parliament and regional officials.

What happens if the two men disagree is not yet clear. "It is one of the major threats," says Sergei Markov, an MP from United Russia and political analyst. "The idea is to have one centre of power, with two people."

One of the first signs as to how the Medvedev-Putin partnership will work in practice will come when the new cabinet is named. Mr Markov said there would be structural changes but little ideological change. It has been rumoured that the number of deputy prime ministers will increase from five to 11, with one of the jobs possibly going to Mr Putin's powerful deputy chief of staff, Igor Sechin, who is reported to lead a clan of Kremlin hardliners known as the siloviki.

What happens with the posts of head of the FSB (the successor to the KGB) and head of the presidential administration will also be keenly watched, as both posts wield enormous responsibility.

The role of Alexei Kudrin, the current Finance Minister, in the next government will also be significant. Widely regarded as one of the few remaining economic liberals in Mr Putin's government, Mr Kudrin is thought to be opposed by the clan of Kremlin ex-KGB hardliners.

Late last year his deputy was arrested over money laundering claims in what most analysts saw as an attempt by the hardliners to weaken Mr Kudrin's position. Where he ends up in the new government should provide an important clue as to who is winning the behind-the-scenes battle for influence.

Mr Medvedev, the former chairman of the state energy giant Gazprom, has hinted that he wants a more liberal Russia, with a freer media and less state interference in the economy. How serious he is, and how much he will be allowed to pursue his own course, will start to become apparent over the next few weeks.