Putin fields phone-in questions

When Mr Putin was president, the broadcast became an annual tradition

Prime Minister Vladimir Putin has warned Russians of tough economic times ahead in a nationwide question-and-answer broadcast.

But he said Russia would take firm action - preventing a sharp fluctuation of the rouble, and taking stakes in troubled banks and firms.

He also said he hoped for better ties with the US under Barack Obama.

A Conversation with Vladimir Putin is being filmed at a studio in Moscow in front of a 400-strong audience.

People from across Russia have put questions to the former president.

Last year, a million questions were submitted in advance, the Kremlin said. However, all were screened and none were considered overtly hostile to him.

'In better shape'

This year Mr Putin has touched on economic issues, relations with the US and energy supplies.

He reassured Russians that the current economic troubles would not compare with the collapse of the 1990s.

"It will be a difficult period for the world economy and also for ours," he said.

"We remember that not so long ago in the early 1990s we had problems like keeping the territorial integrity of the country. Industry was in total collapse as well as the social system. Today the country is in a much better shape."

Mr Putin also said Moscow would be forced to reduce gas supplies to Ukraine if Kiev did not pay off $2.5bn (