A summary of the key points will follow shortly but in the meantime here are Shaun’s thoughts:

An odd press conference. Putin was on good form for parts and seemed to be enjoying himself, but he offered little concrete in the way of getting out of the crisis. He said what we would expect on foreign policy, vigorously defending Russia without being too hawkish. There was space for some typically colourful metaphors and expressions. His words are unlikely to terrify the market, but probably won’t massively reassure it either.

It was pitched middle-of-the-road in all senses, there was lots of rhetoric but no major new policies announced, some conciliatory words about Ukraine but nothing concrete, and the most difficult questions were ducked or avoided.

It was significantly shorter than last year (4hrs40) coming in at 3 hours and 10 minutes, but he still covered a lot of ground.

The journalist pointed out that the law contradicts previous statements by Putin talking about the need for an independent TV channel.

Last three questions, declares Putin.

A question about Iran from an Iranian business journal. Maybe someone should be appointed to boost turnover and trade with Iran? There needs to be a change of ambassador. You promised to visit Iran and to sign a trade deal with Iran but neither happened, I don’t understand, has there been a change of strategy?

We will analyse the efficiency of our embassy in Tehran but on the whole we are satisfied.

Russia is taking steps to improve turnover with Iran but it also depends on the global economy, says Putin.

He references the fall in oil prices and says some people are talking about a conspiracy between Saudi Arabia and the US to harm Iran and Russia. Putin says: “It might be [true] it might be.”

The president says that it may be an attempt to put people off investment in shale, i.e. to make it uneconomic.

Russia is cooperating in machinery and aircraft construction, it is not just about energy, Putin says.

Referring to the trade deal mentioned by the questioner, the Russian president says he believes they are very close to finding a solution.

A visit to Tehran is quite possible and they are trying to agree on the timing and terms of it.

Sechin is considered one of Putin’s closest allies.

A woman holding a green fluffy crocodile just asked about parking fines in Moscow.

Here is what Wikipedia says about Gena the crocodile:

Gena the Crocodilefriendly crocodile in the series of animation films Gena the Crocodile, Cheburashka and Shapoklyak by Roman Kachanov (Soyuzmultfilmstudio). Gena the Crocodile made his debut in 1966’s novel Gena the Crocodile and His Friends by Eduard Uspensky.

A question from the Chechen leader’s press secretary.

Question from the FT’s Courtney Weaver.

Russian billionaire Vladimir Yevtushenkov’s oil company, Bashneft, has been nationalised and he was placed under house arrest although he was released on Wednesday.

From the FT

Yevtushenkov’s star fell rapidly his autumn when he was placed under house arrest in connection with an investigation into Sistema’s purchase of Bashneft, which was privatised in 2003 and acquired by Sistema a few years later.

In October, a Moscow court gave the state permission to seize Bashneft from Sistema after ruling that the company’s privatisation deal had been illegal. Sistema declined to appeal against the ruling.

Next a journalist from Xinhua asks about relations between Russia and China.

China is our largest trade partner, it will grow further.

We have many common interests in the international arena, says Putin, and together the two countries help stabilise the situation in today’s world.

Asked a question about Turkey by a Turkish journalist, Putin says Turkey and Russia have many interests that coincide.

Putin says

We will help you conquer your place under the sun in the Russian market.

UPDATE: A tweet was deleted from this block as it referred to the man asking the question as being drunk. It later emerged that he has had two strokes.

As for your aunt everything is just fine don’t worry

A dignitary from Europe asked me do you have love? ...I have people who love me, everything is just fine, don’t worry.

Putin is asked for details on the amnesty for those returning capital back to Russia.

Businesses can keep their capital abroad but register it, says the president.

There will be “no criteria and no filters”. The government is developing the mechanisms at the moment.

It will also enable legalisation of capital hidden within Russia, he says.

Next question, from Reuters, the first from western media, is how sure are you of your circle that you will have its support always. How high are the risks of a coup d’etat in Russia?

Putin says

Do not be afraid.

There can be no overthrow of palaces because there are no palaces.

The president says he has support on domestic and foreign policy from the people because they know he is acting in their “overwhelming interests”.

The Russian elite, says Putin, are the peasants, ordinary workers, who bear the weight of the country on their shoulders.

Ramzan Kadyrov is the Chechen leader.

Everyone must obey Russian law, says Putin.

He says that in the overwhelming majority of cases families of terrorists know about their relatives’ activities but that does not give the right to anyone to act in that manner, including the head of Chechnya.

He says people who burned houses had their faces covered so they may have been people who acted on “emotional comments” by Kadyrov, rather than people acting in an official capacity. Law enforcement agencies are looking into it.

He refers to methods of combatting terrorism elsewhere, mentioning Israel, where they destroy the houses of terrorists’ families, and the US.

In America, torture was legalised. Do you believe that?

Putin is asked about Russia’s former richest man Mikhail Khodorkovsky who the president surprisingly pardoned last year after he had spent more than a decade behind bars. There is laughter as the questioner says that Khodorkovsky said he would not take part in politics but recently said he wants to be president. Do you regret pardoning him?

https://twitter.com/shaunwalker7/status/545525070828171265

There is a question about a website for gifted children in Russia that helps foster patriotism. Will there be state support for such incentives? We would like to invite you to us.

Putin wishes the questioner every success in her endeavour.

Of course we’ll try to support the projects of such dimensions ...I believe there will be special funds for gifted children for the entirety of their education.

Next question is the number of hospital beds and staff, especially in Moscow, is reducing, what is your attitude to that?

Putin says this is one of the fundamental aspects of our lives. Millions of people expect from us to ameliorate the problems in healthcare, we should focus on that and what we have to do to make the situation better.

We spend a lot on healthcare but it’s not very efficient ...We should work on high-tech components of medical systems.

The Moscow government believes there have been 30% more beds than needed and that costs money in terms of land, electricity. That money could be better spent, says the president. He believes the Moscow government is taking steps in the right direction.

The currency market is a concern for millions of Russians. Who are those people who speculate on the currency? Can you name them (Putin said they must be “dealt with” earlier this month)? Why can’t we overcome them? Are we considering fixing the currency?

Funds, “our companies” can be involved in speculation, the president says.

Putin is asked about energy deals with China and Turkey. Asia-Pacific and Turkey need new sources of energy, he replies.

Why would we refuse them?

Asked about the situation in east Ukraine, Putin says it must be solved by political means in line with fundamental international principles, including the right of self-determination.

Without a doubt the president of the Ukraine wants to reach a resolution but he is not the only person there, we have heard dignitaries say they want to wage war till the end.

The president says he believes that hostages, prisoners-of-war “should be exchanged right now” so people can find themselves at home before Christmas, the New Year.

There should be positive dynamics in implementing the Minsk agreement, which agreed a ceasefire in eastern Ukraine, says the president.

Ukraine has to respect everyone in their territory, says Putin.

Asked whether Russia’s current situation is a result of what is happening in Crimea, Putin replies with an analogy that I’m afraid I’ve slightly lost the thread off about a bear in woods and honey. He also refers to the bear’s fangs being taken out and the bear being stuffed. There’s a reference to nuclear deterrent in there. He concludes:

Do we want our bear to just become a stuffed animal?

Next question is from Ukraine asking about Russia’s intervention in Ukraine. How many Russian troops did you send there? How much weaponry did you send there? How many Russian soldiers died there? What did you tell your mothers?

Putin says the commander-in-chief is responsible for the destiny of the troops. All those who volunteer to take part in military action are not mercenaries. What went on in the east of the country was a “punitive operation” but organised by Ukraine.

The problem is that after the coup d’etat ...a forceful overthrow, instead of starting a political dialogue, the new authorities started using law enforcement officers, when that didn’t work out they started using the army, when that didn’t work out they started using other means, such as an economic blockade.

He says Russia is committed to dialogue.

Next question. Are we going to live in a divided world?

Putin, referring to the Berlin Wall says we are currently witnessing the building of new walls. Isn’t Nato expansion a wall, a virtual wall? He also refers to ABM (anti-ballistic missiles) near our border.

We want our partners to understand that the best way is to stop building those walls and to build a united humanitarian space.

Journalists are asked to keep their questions short so more can be heard of Putin.

What do you think is happening to the country at the moment?

The president stresses the need to create favourable economic conditions and a good business environment.

We have to stop using law enforcement agencies to punish everyone we don’t like.

The country must take practical actions and keep concentrating.

Second “question” begins with a comment thanking Putin for his optimism, the mood of Russia depends on the president’s mood, says the questioner.

Will be able to use the current crisis to restructure the economy? The main danger in Russia is bureaucracy. Are you sure that your thoughts and decisions will be implemented?

The president says we must have the right macroeconomic policy and reserves to give us optimism.

In our country bureaucracy is nothing compared to the European Union.

Bureaucracy is not the problem in our country, says Putin.

We will have to face some difficulties and we’ll definitely have to confront some social issues... but still we can benefit from the situation [by diversifying the economy].

The first question is will there be a financial and economic crisis over the next two years? And what do you think of the criticism of the government.

The economic situation may improve earlier than two years, says Putin. The government and central bank are “acting properly and correctly”. Maybe they could have acted quicker, he admits.

Why am I optimistic? Because the economy will adjust to low fuel prices, the question is how long it will take.

In order to stabilise the national currency, we might squeeze up the ruble liquidity a bit.

Putin refers to the low oil price and knock-on effect on gas prices. Says it is possible they could put further downward pressure on the rouble.

Incidentally, investors, bankers and diplomats have said that they will all be watching this press conference closely. Russia’s political course is so tied up with what is going on inside Putin’s head that the markets will be following his tone closely. Will we hear the angry, combative sabre-rattling Putin or will he give a message that will reassure the markets?

The president walks on stage to light applause. He is reeling off economic figures.

The level of unemployment is quite low...

As you know this year we had a record harvest ....despite all the turbulence on the financial markets ...incomes will be higher than spending.

Ukrainian soldiers have been wearing shoulder patches showing a sprig of dill – an unofficial ensign adopted as a symbol of resistance.

Welcome to our live coverage of Vladimir Putin’s annual press conference. We’re expecting Russia’s currency crisis and the economic fallout to dominate.

Our Moscow correspondent Shaun Walker will be filing from the scene throughout the morning. Here is his introduction:

I’m in the hall for Putin’s press conference, having gone through three layers of security. There are 1259 journalists accredited for the event, many of them from small regional publications, and the entire foreign press corps in Moscow is also here.

The way it works is that Putin’s spokesman Dmitry Peskov will pick on journalists to ask questions that have been arranged with the Kremlin in advance. Towards the end of the session, Putin himself takes over and picks people at random, hence the regional journalists who have bought hand-painted signs and other objects in the hope of attracting the president’s attention (and hence the ban on furry toys).

Last year Putin went on for four hours and 40 minutes (lucky we are not allowed to take any water in), and even then he was not finished. As he left the stage, he was accosted by a (probably planted) question about Mikhail Khodorkovsky, formerly Russia’s richest man who had spent ten years in jail. Putin, away from the cameras, made the surprise announcement that Khodorkovsky could go free, and within 24 hours the former oligarch had left prison and been flown to Germany.

Usually, he waxes lyrical on all kinds of subjects. There are usually a couple of tricky questions, but the beauty of the format is that he never has to face a follow-up question, and Putin is good at batting away the one-off tough questions with fruity rhetoric. How an imaginary Paxman v Putin interview would look, we will never know, sadly.

The obvious topic on everyone’s minds right now is the falling rouble. The currency has stabilised in the past 24 hours after a dramatic fall on Tuesday, but the currency is still down nearly 50% on the start of the year. Other obvious topics are the annexation of Crimea in March and subsequent war in east Ukraine. We can expect at least one question from a local Crimean journalist, but it is probably less likely that anyone will get the chance to properly put the evidence to Putin that the Russian Army was involved in the fighting in east Ukraine, and ask why he doesn’t just admit it.