Dmitry Medvedev may be Russia's president but Vladimir Putin has kept his place in the Kremlin.

When Putin came to his old office in the Kremlin on Monday to propose the names of ministers for his government, the former president made for his customary seat on the left of the desk.

But he paused before sitting down and told President Medvedev: "Now this is your place," Russia's Kommersant daily reported.

"Oh, what's the difference?" Medvedev answered and immediately sat on the right of the desk, where Putin's guests traditionally perched for the eight years of his presidency.

©AFP

A photograph of the two leaders published on the Kremlin's website showed them smiling at the start of the meeting. Putin sat on the left and Medvedev on the right.

Investors have been searching for clues about who will really rule Russia's $1.3 trillion (666 billion pound) economy and hold sway over its massive natural resources.

Analysts and media said the seating arrangements at Monday's Kremlin meeting showed that Putin -- at least for now -- remained in the driving seat.

Medvedev swiftly approved all Putin's proposals for the government, which was filled with the former Kremlin chief's closest advisers and trusted allies.