In front of the museum of the old russian wooden architecture there are several great souvenir-stands selling local crafts and some great souvenirs like the matrioshka-dolls at cheaper prices than in Moscow. Funny to see how fast the new president of Russia, Medvedjev became one of the features of these Matrioshkas.
What to buy: I loved the special kind of woodcarvings of boxes, because I did not see this kind of souvenir in any other part of Russia so far (see them on my 1st and 2nd photograph !)
Among souverirs and local crafts in the street you will see a lot of bottles with mead drink in the streets. It is the most delicious light alcoholic drink of ancient Russia!
What to buy: Do not rush to buy, you will have enough time to do it. Every seller will alow you to taste first. Some times homemade mead is very good, sometimes - not. To be sure, you can buy a bottle in a restaurant - the price is almost the same like in a street.
Do not buy too many bottles for friends - real mead is a perishable goods, it could be kept for 1 week only.
Just outside the Kremlin the streets are lined with people selling crafts. Some local made high quality, some of mass produciton lower quality. But all of it fun to walk around and look at.
What to pay: You can bargan a little with the vendors, but they are used to the tourists here and won't bring their prices donw to much
In summertime there are lots of souvenir market stalls. I don't know about winter.
What to buy: There is a wide variety of souvenirs, made out of birch and others which seem to be imported from China.