Russian state news agencies said it was the first time in years that President Putin had marked Christmas in Moscow rather than in regions around the capital.
Footage of the service shows the gloomy Russian leader watching on as Orthodox priests carried out the midnight service, known as the Divine Liturgy.
President Putin, wearing a blue jacket and a high-necked white sweater, crossed himself several times in the video clip, which was shown on state TV.
The Cathedral of the Annunciation, located in the Kremlin, connects directly to the main building of the complex of the Grand Kremlin Palace.
The cathedral is historically known as the home church of the Russian Tsars.
This led many viewers on social media to describe the Russian leader as hiding in a “bunker”.
It also marks a distinct difference from Easter last year, where President Putin attended a service in the cathedral with thousands of others.
He mocked what he called “the pathetic attempts” by Kyiv to destroy the church in Ukraine.
This comes as Patriarch Kirill called for both sides to observe a 36-hour Christmas truce that Putin had announced.
However, this offer was rejected by Kyiv as a ruse to buy time for Russia’s forces to regroup.
The truce has already seemingly faltered according to the latest intelligence briefing from the UK Ministry of Defence.
The MoD confirmed that fighting between Russian and Ukrainian forces has continued at a “routine level” into the Orthodox Christmas period.
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