By Caroline Wyatt BBC correspondent in Moscow

Russian President Vladimir Putin has signed a decree ordering Chechen officials to begin preparing for a constitutional referendum to pave the way for new presidential and parliamentary elections in the separatist republic.

The referendum's supporters hope it will help bring stability to a region ravaged by conflict for the past decade.

Putin says the vote does not mean he will soften its stance on the separatists

However, critics argue a referendum will be meaningless unless a peace deal is reached between the rebels and Moscow first.

Near the Kremlin, at least 200 people demonstrated against the war on Thursday, despite the cold and snow.

Speeches and banners called for immediate peace talks and the withdrawal of the Russian army there.

Neither is likely to happen soon, but President Putin has at least made some move to break the political deadlock.

Mr Putin refuses to negotiate with the rebels, or with Chechnya's President, Aslan Maskhadov.

His term of office ran out earlier this year without new elections being held.

Moscow sees him as being part of the problem, but optimists believe a new Chechen parliament, and a new leadership, might make peace talks possible.

However, the Russian president was careful to emphasise that a referendum in Chechnya on a new constitution and parliament did not mean Moscow would soften its stance on the separatists.

At the same time, the Kremlin is still pushing Britain to extradite Akhmed Zakayev, a top aide to the Chechen president.

He is currently in London, and stands accused by Moscow of murder, and helping mastermind the recent siege of a Moscow Theatre.