Dmitri Medvedev made freedom the defining goal of his presidency today after being installed as Russia's youngest leader since Tsar Nicholas II. With the outgoing leader Vladimir Putin looking on, President Medvedev used his inauguration speech to promise greater "civil and economic freedom" for all Russians.

In the pomp and majesty of a former Tsarist throne room, he declared that Russia had a unique opportunity to join the ranks of the world's leading countries and promised to use its booming economy to create "a better place for a comfortable, confident and secure life for our people".

"Human rights and freedoms . . . are deemed the highest values for our society and will determine the meaning and content of all state activity," Mr Medvedev, 42, told 2,400 dignitaries assembled for his inauguration as Russia's third president in the Great Kremlin Palace.

"We must achieve true respect for the law and end the legal nihilism that is seriously hindering modern development . . . I will do everything possible so that the security of our citizens is not just guaranteed by the law, but is really ensured by the State."

Like Mr Putin eight years before him, Mr Medvedev made the long walk alone along the red carpet through the palace to the gold-lined splendour of the Andreyevsky Hall for the ceremony.

His slight figure seemed almost to be swallowed up at times by the scale of the occasion and the responsibility placed upon him as he neared the podium to take the oath of office, passing through an honour guard of soldiers from the Presidential Regiment dressed in Tsarist-era uniforms.

Mr Putin spoke first, however, underlining the message for millions of Russians watching on television that he will retain a firm grip on power long after he leaves the Kremlin. President Medvedev's first act was to appoint his mentor as Prime Minister.

Mr Putin said that he had pledged eight years earlier to serve the people of Russia "openly and honestly", adding: "I did not break my promise". He continued: "As I hand over the powers of the head of state, I would also like to say that the responsibility of protecting Russia was and remains my civic duty. I have kept to it all these years and will keep to it my whole life."

Mr Putin, 55, remains highly popular with ordinary Russians but was barred by the Constitution from seeking a third term. Many in Russia are convinced that Mr Medvedev, who has never previously held elected office, will be little more than a figurehead while Mr Putin continues to run the country.

However, Mr Medvedev's supporters insist that he should not be underestimated and that he will grow in stature now that he has acquired the powers and trappings of head of state. The former academic lawyer from St Petersburg, who is seen as the standard-bearer of the Kremlin's liberal wing, represents potentially the coming-of-age of the first truly post-Soviet generation.

He is the first Russian leader not to have any known links either to the Communist Party or to the KGB and has made much of his love for the British rock group Deep Purple, whose music was banned in Soviet times.

Mr Medvedev, his right hand resting on a copy of the Constitution, recited the 33 Russian words of the oath — 52 in English — that confirmed him in office for the next four years.

"In performing my duties as the President of the Russian Federation, I pledge to respect and protect the rights and liberties of every citizen, to observe and protect the Constitution of the Russian Federation, to protect the sovereignty and independence, security and integrity of the state and to serve the people faithfully," he said.

The chairman of the Constitutional Court, Valery Zorkin, then declared that Mr Medvedev "has assumed the office of President of the Russian Federation". The ceremony, including Mr Putin's speech, took just 10 minutes.

Mr Medvedev thanked Mr Putin for his "constant personal support", then told the hall and the nation: "You understand what deep feelings I am experiencing now. I am well aware of the responsibility I am assuming and I hope for our cooperation. Life and history set us new, more difficult goals. But I am convinced that our country and its hard-working and talented people are well able to achieve them. My duty now is to serve them every day and every hour."

Mr Putin is the first Russian leader to step down at the completion of his full constitutional term and to hand the presidency to a successor. Doubts remain, however, over the stability of the power tandem with Mr Medvedev in a country accustomed to a single centre of authority.

Many in the West are hoping that Mr Medvedev will soften the increasingly aggressive stance adopted by Mr Putin in foreign policy.

The new President's first challenge, however, is likely to be the deepening crisis with Georgia. Both sides have given warning that they are close to war over Georgia's breakaway region of Abkhazia. Georgia has accused Russia of plotting to annexe the territory while Moscow claims that Georgian forces are massing for an invasion to regain control of Abkhazia from local separatists.

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