The Kremlin leader met with pro-government volunteers, the acting regional governor and toured the Kursk Nuclear Power Plant.
His arrest is reportedly linked to a criminal investigation into the alleged embezzlement of public funds meant for defense fortifications.
Russia's Defense Ministry said its troops retook control of the village of Guyevo, located near the Ukrainian border and south of Sudzha.
“If they lay down their arms and surrender, their lives will be guaranteed,” Putin said after U.S. leader Donald Trump called on him to spare the lives of “thousands” of Ukrainian troops.
Some independent military analysts are predicting that Russian forces will regain full control of the border region in the coming days.
Regional authorities said a feed mill building was destroyed in the attack, while other property was damaged.