Putin, the most influential political figure in Russia, who is to serve this time an extended six-year term, has vowed to lead his country through a new stage of national development.
Vladimir Putin speaks during the inauguration ceremony at the Kremlin in Moscow, Russia, May 7, 2012. Putin was sworn in on Monday as Russian president, starting his third term in the Kremlin following the two consecutive terms from 2000 to 2008. (Xinhua/RIA Novosti)
"Now, Russia is entering a new stage of its development. We will need to solve the tasks of a new level, different quality and scale. The coming years will be decisive for Russia's destiny for decades ahead," Putin said in a brief speech during the inauguration ceremony.
The new president, who had served as prime minister from 2008 to 2012, stressed that he would fulfill his responsibility to the country.
"Its interests, security, the welfare of its citizens have always been and will always remain above all for me. I will do my best to live up to the expectations of millions of our compatriots, " Putin said.
The new president also spoke highly of former President Dmitry Medvedev, saying he has guaranteed the continuity of Russia's development.
"Today we have everything for advancement, for construction - an effective and developing state, a solid economic and social base, an active and responsible civil society. I largely attribute this to the efforts of Dmitry Anatolyevich Medvedev," Putin said.
Putin had pledged before the country's presidential election that after his inauguration, he would submit a bill to the State Duma, or the lower house, nominating Dmitry Medvedev as the new prime minister.
Under the Constitution, as Putin takes office as the new president, the Russian government would resign but still perform duties until the formation of a new one.
Currently, First Vice Prime Minister Viktor Zubkov is the acting head of the Russian government.
Also on Monday, Putin signed a series of decrees covering a wide range of issues including economy, foreign policies, military and population.
After winning the elections in March, Putin has promised that his first presidential decrees would outline the road map of Russia's development for the next decades.
According to a decree on long-term state economic policy, the country's aim is to increase the pace of its economic growth and citizens' income in addition to building a Russia with technology advancement.
The decree envisages that investments in Russia will grow to 25 percent of the gross domestic product (GDP) by 2015 and to 27 percent by 2018.
Meanwhile, Putin ordered in the decree that the government should create some 25 million highly-productive jobs by 2020 and adopt by the end of 2012 national programs of development on health care, education, culture, social welfare, science and technology, transportation and space explorations.
With regard to a decree on Russia's foreign policies, Putin said Russia would seek guarantees from the United States that a U. S. missile defense shield is not targeting Russia.
Russia will "consistently stand up for its policy towards the creation of the U.S. global missile defense system" and "seek guarantees that it will not be directed against Russia's nuclear deterrent forces," the decree said.
Meanwhile, Putin instructed the government to take measures to seek "stable and predictable interaction" with the United States and close ties with the European Union.
On relations with China, Putin called on both countries to deepen their strategic partnership of coordination.
The new president also said Russia would play a bigger role within the framework of the G8, the G20, the Shanghai Cooperation Organization and the BRICS.