Russian President Vladimir Putin has topped Forbes' 2014 power list, trumping U.S. President Barack Obama who came in at a close second, for the second time in a row.

Putin has shown considerable power this year, strong-arming his way into annexing Crimea and stoking conflict in neighboring Ukraine.

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Earlier this year, Putin also closed a US$400 billion energy deal with China that was hailed by Forbes as the world's largest construction project to date. Most believe the deal would have a staggering effect on global energy markets and shift the balance of power in Europe.

Obama ranked second on the list, the third time since Forbes Most Powerful began in 2009. He had previously been ranked first on the list every year, except in 2010 when China's former military and political leader Hu Jintao was number 1.

According to Forbes, the top two posts were ultimately decided by answering the question - "So who's more powerful: the omnipotent head of a feisty former superpower or the handcuffed head of the most dominant country in the world?"

This year's top five most powerful remained unchanged with Chinese President Xi Jinping coming at third, Pope Francis at fourth and German Chancellor Angela Merkel as the most powerful woman at fifth.

Twelve newcomers join the list including Indian Prime Minister Narendra Modi at number 15, Alibaba founder Jack Ma at 30, Egyptian President Abdel el-Sisi at 51, and Islamic State's self-proclaimed caliph Abu Bakr al-Baghdadi at 54.

The 2014 list features 17 heads of state and 39 business CEOs and executives.

Nine women are included in this year's list, accounting for 12 percent of the world's most powerful. Two women placed in the top 10 - Merkel and U.S. Federal Reserve's Janet Yellen who ranked at sixth.

Forbes Most Powerful which lists 72 this year is based on votes from the magazine's editors, taking into consideration certain factors such as scope of power, broadness of impact and financial resources.

The lineup's evaluation relies on the concept of hard power, the kind that shapes and moves the world, people, minds, armies and markets.

TagsForbes Most Powerful 2014, Obama, Pope Francis, angela merkel