Russian President Vladimir Putin and his favoured successor Dmitry Medvedev took turns to lecture officials on Wednesday in a glimpse of the double act likely to run Russian politics for the next four years.

The two men looked comfortable in each other's company, sharing jokes at a meeting of the State Council, a gathering of ministers and regional governors.

In a sign that Putin wanted Medvedev to step out of his shadow, the president invited him to speak about the sector he oversees -- "national projects" to reform health care, education, agriculture and housing.

Medvedev, who has no strong power base of his own, used the opportunity to defend the projects against sceptics -- some of whom were sitting in the auditorium.

"National projects, designed as an investment to improve living standards have turned out to be good economic instrument," he told stony-faced governors assembled in the Kremlin's gilded St Alexander Hall.

Putin has endorsed Medvedev to replace him when he steps down from the presidency next year and said this week he is ready to serve as prime minister if Medvedev wins the March 2 election, ensuring he retains a tight grip on power.

Investors have welcomed the nomination of Medvedev, a more liberal figure in Putin's entourage. The support of the popular president means his first deputy prime minister and long-time associate for 17 years, is almost sure to win the election.

Analysts say Putin's choice of Medvedev has upset Kremlin hardliners, who backed Prime Minister Viktor Zubkov or First Deputy Prime Minister Igor Ivanov. A joke cracked by the Kremlin leader suggested that his choice was not easy.

"I see a curly-haired metal turner on one side and a curly-haired blacksmith on the other," said Putin, flanked by Zubkov and Medvedev, citing a song about a girl choosing between two admirers, a favourite of his predecessor Boris Yeltsin.

Putin reminded his audience that they will have to continue carrying out his will even after his term ends in May next year. He added that a parliamentary election this month won by his party "demonstrated popular support for political forces which are ready and capable of implementing this strategy".

However, some analysts said the arrangement with Medvedev was fraught with risks and the potential for conflict: on paper, the prime minister's job is a junior post but Putin is accustomed to wielding massive power.

Ramzan Kadyrov, the president of the restive Chechnya region who is well known for his extravagant displays of loyalty to Putin, said he was ready for a dual-leadership.

Asked whether he will swap Putin's picture in his office with the one of Medvedev after the elections, he said: "I will add one more picture, I will have both of them there."

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