He made the comment in response to a reporter's question at a joint news conference with U.S. President George W. Bush in St. Petersburg today.
"To tell you frankly, we, of course, wouldn't like to have such a democracy as in Iraq," Putin said.
Russia has been accused by Western, including U.S., officials of backtracking on democratic reforms.
Moments earlier, Bush had spoken of his desire to promote democracy in the world, and used as an example freedom of the press and religion in Iraq.
Russia, which vehemently opposed the U.S.-led invasion of Iraq, has consistently criticized U.S. actions there.
G8 Summit: St. Petersburg, July 15-17
A worker hangs G8 banners outside the Russian National Library in St. Petersburg (epa)
SITTING DOWN AT THE TABLE: On July 15-17, Russia hosts the leaders of the Group of Eight (G8) leading industrialized countries in its northern capital, St. Petersburg. The event is a landmark in Russia's reemergence on the international stage after more than a decade of painful transition. In many ways, Russian President Vladimir Putin will be the strongest and most confident of the leaders at the meeting, despite international concerns about the state of Russia's democratic development. Below are links to some of RFE/RL's reporting on the run-up to this major international event.