Putin plays down rouble crash as he vows to diversify Russian economy in annual Q&A

President Vladimir Putin has vowed to put an end the rouble crisis after it plunged to a record low earlier this week, piling pressure on the Kremlin and the country's central bank, at his annual news conference in Moscow.

Putin said the rouble has come under pressure due to external factors and warned Russia's economic malaise could last two years. But refrained from describing the current situation as a "crisis" as he pledged to reduce Russia's dependence on oil and diversify its economy.

Reacting to the rouble's crash, Putin argued the central bank could have acted sooner to prop up the currency before announcing an emergency rate hike to 17 per cent in the early hours on Tuesday.

He did not, however, call for additional measures to support the rouble and insisted Russia has enough reserves to put a floor to the currency's collapse, but warned the central bank should not "burn" them aimlessly.

He also rejected proposals to fix the rouble rate, saying it would not achieve positive results and wouldn't force Russian exporters to sell their hard currency earnings by decree either.

The rouble plunged to a record low of 80 per dollar and 100 per euro on Tuesday, having lost almost 50 per cent of its value this year amid falling oil prices and Western sanctions over the Ukraine crisis.

Additional reporting PA in Moscow