Russia's relations with the United States and the European Union already had plunged to post-Cold War lows after Moscow's annexation of Ukraine's Crimean Peninsula, election meddling, hacking attacks and, most recently, the jailing of Russia's opposition leader Alexei Navalny after his poisoning, which he blamed on the Kremlin.
Mr Putin said he last spoke to Mr Biden over the phone at the USA president's request and now he proposed they had another conversation, on Friday or Monday, to be held by video-link and broadcast live.
The Russian leader proposed that Biden's comments were related to the US's own history of slaughtering Native Americans and slavery - and even linked them to the Black Lives Matter movement.
His remarks came after Biden suggested Putin is a "killer" and said Russian Federation would pay a price amid the latest attempts to revive the Russian Federation hoax.
The Russian president also wished Biden "good health" and expressed hope for productive work on mutually beneficial projects going forward.
Recalling his childhood, Putin said that he and his friends would respond to insults with a rhyme saying, "the names you call is what you are yourself".
Putin claimed that the U.S. establishment likes to air accusations against other countries as part of its efforts to "solve domestic and foreign policy problems". "It would be in the interest of both the Russian and USA people and other countries, bearing in mind that we bear a special responsibility for global security as the largest nuclear powers".
"We always see in another person our own qualities and think that he is the same as us", Putin said, referring to Biden's "killer" comment. "He has clearly shown that he doesn't want to improve relations with our country", Dmitry Peskov, Putin's spokesman, said. "They've both been on the global stage for a long time, worked through many iterations of a relationship between the United States and Russian Federation".
The deputy chairman of the Russian parliament's upper house, Konstantin Kosachyov, said Biden's comments ended hopes of a change in U.S. policy towards Russia under the new administration.
"Such assessments are inadmissible for a statesman of his rank", Kosachev said. "This kind of statement is not acceptable under any circumstances".
He warned Russia's response would not be limited to recalling the Russian ambassador "if the American side fails to offer explanation and excuse".
During Biden's interview, the President also added that Russian Federation will "pay the price" for meddling in the 2020 elections, a move which a USA intelligence report shows was created to undermine Biden's campaign. In a highly unusual move following Mr Biden's interview, Moscow recalled its ambassador to the United States for consultations.
"Although they think we are the same as them, we are different people, we have a different genetic and cultural-moral code", Putin said, in televised remarks, citing USA slavery and the country's deployment of the nuclear bomb in World War II.
The move to recall its ambassador is nearly unheard of in recent U.S.
"Nope. The president gave a direct answer to a direct question".
"I've just thought of this now", Putin told an RT reporter.