The Crimean flag is being flown on state buildings across Russia to mark the anniversary of the country's annexation of Crimea.
The region was absorbed into Russia after a disputed referendum that was boycotted by those loyal to the government in Ukraine and condemned by the European Union and by the United States.
A year after Russia's takeover of Crimea, residents are suffering growing hardship as prices rise and many fear for the future.
Despite this, President Vladimir Putin's popularity has soared and some Crimeans, such as pensioners, say they have benefited.
But foreign investors have fled, the banking sector is paralysed and many other residents are struggling to make ends meet.
Life was hard when Crimea was part of Ukraine but it is proving no easier as part of Russia, which has been hit by Western economic sanctions over the annexation of Crimea and Russia's support for separatists fighting in eastern Ukraine.
Such discontent has not prevented the celebrations which began on Monday in Crimea, the anniversary of the referendum which showed 97% support for joining Russia.
The days-long party will also include a concert in Moscow today.
Although the EU and the US swiftly imposed sanctions on Russia following its move on Crimea, President Putin made clear he had no regrets in a television documentary aired on Sunday.
"The ultimate goal was to give people a chance to express their opinion on how they want to live in the future," he said of the referendum, describing the dispatch of Russian forces to Crimea as intended to prevent bloodshed and save lives.
Despite the problems they face, most Crimeans are still glad to be part of Russia, its leaders say.
"The president's ratings in Crimea are almost 100%," Crimean Prime Minister Sergei Aksyonov told Reuters in a modest office with the Russian and Crimean flags.
"Nine out of ten people say they support (the annexation),and would vote the same way again," he said.
The Kremlin is standing firm over the annexation, though the US and the EU on Monday again condemned the takeover of Crimea, portrayed the referendum as a sham and said sanctions would remain in place.
Even some Western diplomats, however, say there is little chance Russia will hand Crimea back to Ukraine.
"Crimea is a region of the Russian Federation and of course the subject of our regions is not up for discussion," Kremlin spokesman Dmitry Peskov said yesterday.
