The prime minister's annual televised question-and-answer session on Thursday was accompanied by intense speculation that he may be planning to return to the country's top job after the term of President Dmitry Medvedev expires in 2012.

Putin was president from 2000 to 2008 before switching roles due to constitutional restraints prohibiting a third consecutive term.

Putin said he would consider running for president again.

"I will think about it, but there is plenty of time," the prime minister said. "I think now, however, whatever your position, you must do your duty. My decision to take part in the 2012 presidential election depends on the social and economic situation. It is only 2009," he said.

Asked whether he would consider leaving politics altogether, he responded: "Don't hold your breath."

In light of the bombing of the Moscow-to-Saint Petersburg express train earlier this week, the prime minister admitted that the threat of terrorism was very high. Putin said Russia needed to be very tough on criminals that carry out acts of terrorism.

Looking past the economic downturn

On the financial crisis, Putin was upbeat, saying the worst was over, but that an exit would require time, strength and money. Putin said the country's Gross Domestic Product would decline around 10 percent this year and that industrial production was down 13 percent.

Putin emphasized, however, that Russia's strategic goal was to join the World Trade Organization, but blamed what he called "unknown reasons" that were hindering accession to the WTO.

Touching on the country's domestic nuclear energy industry, Putin announced that his government had "big plans" to develop nuclear power by adding another "30 or 32 reactors" to the existing 35 or so from the Soviet era.

Putin coy on Iran

On the issue of Iran's nuclear ambitions, Putin said there was no evidence that Tehran was trying to build a nuclear weapon. When asked if Russia would support sanctions against the Islamic Republic, he refused to answer. Moscow has previously only supported sanctions against Iran if they were watered down.

Reflecting on Russia's severe population decline, Putin said the slide had been stopped and that birth rates were now growing at a record pace of over three percent. He said mortality rates were falling, giving impetus to the country's economic recovery.

Responding to a query about evaluating Russian history, the prime minister called for a balanced assessment of the Stalin era. He said the legacy was "not all positive or all negative". Putin praised Stalin for industrializing the former Soviet Union and winning World War Two, but condemned his repressive measures which he said "destroyed the lives of millions."

gb/AFP/dpa/Reuters
Editor: Michael Lawton