Medvedev, a 42-year-old former corporate lawyer and longtime Putin ally, stressed freedom and the rule of law in his first remarks after taking the oath of office in a solemn, emotional ceremony in the Kremlin’s glittering St Andrew’s Hall.
“I believe my most important aims will be to protect civil and economic freedoms,” he told guests at the inauguration, broadcast live on state television.
“We must fight for a true respect of the law and overcome legal nihilism, which seriously hampers modern development.”
Shortly afterwards, the government led by Prime Minister Viktor Zubkov followed protocol by resigning. This cleared the way for Medvedev to nominate Putin as prime minister.
The new leader, who arrived at the Kremlin alone in an armoured black stretch Mercedes limousine flanked by 11 motorcycle outriders, inherits a booming economy fuelled by high oil prices — and a sobering set of challenges.
They include rampant corruption, rising inflation, a falling population, sickly industry and agriculture and increasingly tense relations with former Soviet neighbours and the West.
Before Medvedev was sworn in, a sombre-looking Putin entered the Kremlin alone, bid farewell to the presidential guard and thanked the Russian people for their trust over his two four-year terms. Putin encouraged his audience to support Medvedev but told them not to deviate from his policies.
“It is very important for everyone to continue the course we have started already and which has proved right,” he said.
Following the inauguration, Patriarch Alexiy II, head of the powerful Russian Orthodox Church, led a service in the Kremlin’s Cathedral of the Annunciation to bless the new president.
Putin will retain major political influence after quitting, both in his new role as PM and as head of the ruling United Russia party which controls parliament.
Analysts await Medvedev’s first appointments for clues about whether he will be his own man or rely on Putin’s allies. The Cabinet names are expected to come after Putin’s nomination as prime minister is confirmed by parliament on Thursday.