"The wrong understanding and wrong knowledge of modern Russia is evident here," Kremlin spokesman Dmitry Peskov told reporters.

"Russia is a nuclear power but a very responsible nuclear power, and yes, we have the oil and gas sector," Peskov said.

"But to say that Russia has nothing else is fundamentally wrong."

Biden said on Tuesday that President Putin has "a real problem, he is sitting on top of an economy that has nuclear weapons and nothing else."

"He knows he is in real trouble, which makes him even more dangerous in my view," the US leader added.

Biden also accused the Kremlin of seeking to disrupt the 2022 congressional elections by spreading "misinformation".

Earlier Wednesday US and Russian negotiators went into a fresh round of talks in Geneva aimed at stabilising the thorny relationship between Moscow and Washington.

The talks are a continuation of the strategic dialogue which started last month in the Swiss city with the first summit between Putin and Biden.

The Kremlin spokesman said the strategic stability talks were a "positive sign".

"Contacts are undergoing, that is a plus," Peskov said.

In March, Biden called Putin a "killer", as ties between Moscow and Washington deteriorated.

Tensions are high on multiple fronts including claims of meddling in US elections and Russia's human rights record.