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7 year oldAt his annual news conference, Vladimir Putin said contacts between the Trump team and Russian officials before last year's election were normal.
He said the US opposition was not treating those who elected Mr Trump with respect.
The Trump campaign is being investigated for collusion with Russia.
US intelligence agencies have concluded that Moscow tried to sway the presidential election in favour of Mr Trump, but Mr Putin denies the allegations.
"It's all invented by those in opposition to Trump to make his work seem illegitimate," Mr Putin said, when asked about the investigation.
He added that Mr Trump was responsible for some "quite serious achievements" but had not been in a position to improve relations with Russia.
He expressed hope that this would happen, adding that globally "there are many things we can do more effectively".
Also mentioned by Mr Putin:
Earlier Mr Putin addressed the presidential elections, due to be held next year.
He has already said he will stand for a fourth term, but announced that he would stand as an independent candidate rather than from the ruling United Russia party.
Asked why he had not faced any effective opponent for the presidency, he said the opposition had to come up with specific proposals to improve people's lives and had so far not done so.
"It's not up to me to nurture competitors," he said. "But... I've been thinking that our political environment must be competitive just like the economic environment.
"I hope this will happen, and the sooner the better."
But he said if his opponents won in the presidential election next March, it would destabilise Russia.
"Do you want attempted coups d'etat?" he asked, in response to a question about the opposition.
Mr Putin did not mention opposition leader Alexei Navalny, who is banned from standing in the elections because of a criminal conviction.
The Council of Europe has condemned the conviction as "arbitrary and unfair".
In response to Mr Putin, Mr Navalny tweeted (in Russian) a link to his recently published election programme, with the words: "You're really trying very hard not to notice this."
Another opposition presidential candidate was noticed by the president, however.
Kseniya Sobchak, a celebrity and political talk show host, has announced she will be running against Mr Putin as a "referendum on trust" so that people can vote against him.
She came to the news conference as a journalist for the opposition Dozhd TV and asked Mr Putin about the repression of the opposition, including Mr Navalny, and whether the authorities were afraid of competitors.
He responded by warning of rabble-rousing politicians destabilising the country, and he cited Ukraine as a country where instability was rife.
"I'm sure that the overwhelming majority of Russians don't want this," he said, adding that he was not afraid of anyone.
Mr Putin is known for his marathon performances at his news conferences, where he frequently uses hard-hitting, colourful language.
The record for a Putin news conference was set in 2008, at four hours 40 minutes.
This year's, which went on for nearly four hours, has also set a record, with 1,640 journalists said to be accredited for the event.
Vladimir Putin: From spy to president
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