Vladimir Putin has been sworn in for a fourth term as Russian president and pledged to harness the country's talents to "achieve breakthroughs".
The 65-year-old, in power since 1999, is on course to become the longest-serving Russian leader since Joseph Stalin after his victory in March elections.
He has promised to use his fourth term to revitalise the country's economy.
In a shock move that gave the West the finger, the luxury super-car signalled a shift in Russia's relationships with Britain, America and Europe as Moscow vowed to reduce its dependence on imported goods and technology.
Russian state television showed the 65-year-old leader arise from his office, don a suit jacket and walk down the long redlined Kremlin halls to a waiting vehicle. Hollywood actor and Russian citizen Steven Seagal, a personal friend of Putin, also attended the ceremony.
In a ceremony in an ornate Kremlin hall in Moscow, Putin said improving Russia's economy following a recession partly linked to global sanctions would be a primary goal of his next six-year term.
"Taking up this post, I feel a colossal sense of responsibility", Putin told his audience of Russian officials and foreign dignitaries, among them former German chancellor Gerhard Schroeder.
Officials and analysts say bold policies with the best chance of reviving growth have been mired in disagreements among Putin's policy-makers. "As head of state, I will do all I can to multiply the strength and prosperity of Russian Federation".
Russian Prime Minister-designate Dmitry Medvedev on Monday nominated Vitaly Mutko, who oversaw sport at the height of Russia's doping scandal, as a deputy prime minister overseeing construction.
His most risky opponent, Alexei Navalny, was barred from running and on Saturday Navalny and hundreds of his supporters were detained by police while protesting over Putin's new term under the slogan: "Putin is not our tsar".
Alexei Navalny, an outspoken critic of Putin who was barred from running in the recent election, compared his leadership tenure to an emperorship.
Outside of the ceremony, Mr Putin's inauguration promoted and eruption of protests as around 1,600 furious demonstrators chanted "Putin is not our Tsar". But he has remained silent on the issue of his succession.
Mr. Putin has been in power for 18 years. These included halving Russia's poverty rate, increasing pensions and boosting the average life expectancy to 78 by 2024.
Putin in March warned in his annual state-of-the-nation speech that Russian Federation faced a "loss of its sovereignty" if it didn't manage to revitalize the economy and overcome the technological lag with the rest of the world.