The two-shot EpiVacCorona vaccine has only been tested on 100 volunteers in early-stage trials.
Despite the fact that scientists are refusing to disclose the results of the trials, Russia claims the vaccine is safe and produced an immune response that could provide six months of protection.
Vladimir Putin announced the news in a TV address to the nation, claiming Deputy Prime Minister Tatyana Golikova and the head of Russia's consumer safety watchdog Anna Popova were among those in the early test group.
"We now need to increase production of the first vaccine and the second vaccine," Putin said, adding that the priority was to supply the Russian market.
It comes two months after the world's first coronavirus vaccine was developed by Moscow's Gamaleya Institute – which Putin claimed he had already given it to his daughter.
Speaking at the announcement of the first vaccine, President Putin said he now hopes Russia will start mass production of the vaccine.
At the first announcement, it was claimed the vaccine will be available to Russian citizens from January 1.
The speed at which Russia is moving to roll out its vaccine highlights its determination to win the global race for a vaccine.
But it has stirred concerns that it may be putting national prestige before science and safety.
President Putin said: "We must organise the mass production of the vaccine so that everyone who wants to can benefit from the achievements of our scientists.
"Vaccination must be carried out exclusively voluntarily."
Speaking at a government meeting on state television, Putin claimed the vaccine was safe and it had even been administered to one of his daughters.
"I know that it works quite effectively, forms strong immunity, and I repeat, it has passed all the needed checks," said Putin.