In his first intervention over the chase for Snowden that has captivated world attention, Putin described the ex-intelligence contractor as a "free man" whose arrival in Russia was "completely unexpected" for the Russian authorities.
The dramatic announcement ended two days of guessing over the whereabouts of the fugitive Snowden who leaked revelations of US massive surveillance programmes to the media and is now wanted by the US authorities
"It is true that Mr Snowden came to Moscow," Putin said at a news conference while on a visit to Finland. "For us, this was completely unexpected."
Snowden had been expected to board a flight for Cuba on Monday, reportedly on his way to seek asylum in Ecuador. But he never did and Putin appeared to confirm that the fugitive was still uncertain over his onward travel plans.
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"Mr Snowden is a free man, the sooner he selects his final destination point, the better for us and for himself," said Putin.
However Putin insisted that Russia only extradites foreign nationals to countries with which it has a formal extradition treaty. "We have no such agreement with the United States," he said, calling US allegations that Russia is breaking the law "nonsense and rubbish."
Speaking in Jeddah, US Secretary of State John Kerry called for Russia to be "calm" and hand over Snowden, saying Washington was not looking for "confrontation."
Russian Foreign Minister Sergei Lavrov denied earlier in the day that Moscow is in any way "involved" with the travel plans of the 30-year-old former National Security Agency (NSA) technician.