Vladimir Putin has defended Russia's anti-gay laws in his annual address to both chambers of the Russian parliament.

In an apparent reference to the laws banning "propaganda of non-traditional relations", the Russian president said that on the international arena Russia sees itself as a defender of conservative values against what it considers an assault of "genderless and fruitless so-called tolerance" which he said "equals good and evil".

He said Russia will oppose attempts to impose foreign political ideology on sovereign countries. Such attempts, Putin stressed, often lead to destruction and bloodshed, citing events in the Middle East and North Africa as an example.

In a typically wide-ranging speech, Putin portrayed Russia as a force for peace and morality that had no desire to be a global superpower.

Putin said he was counting on Ukraine to find a political solution to its crisis over President Viktor Yanukovych's decision to spurn a free-trade agreement with the European Union in favour of closer economic ties with Moscow.

"I very much hope that all political forces will manage to reach an agreement and resolve all problems in the interests of the Ukrainian people," he told the Russian parliament.

Speaking about Syria, he pointed out that Russia made a major contribution to the prevention of foreign intervention, setting this country 'on the path for dialogue' and putting its chemical arsenal under international control.

He also praised the progress in Iran, pointing out that it has the right to develop peaceful nuclear technology without putting international stability, and in particular Israel's security, at risk. Nodding towards the US and Nato, he remarked that although the perceived Iranian threat has diminished, plans to develop missile defences in Europe, which Russia sees as a threat to its nuclear shield, continue to be implemented. He warned the west against developing non-nuclear strategic military technology which could upset the global balance and lead to a new arms race. He said Russia was closely watching these developments and ready to respond by developing similar technology.

He said that a customs union treaty will be ready for Russia, Belarus and Kazakhstan to sign by 1 May, with accession roadmaps being drawn up for Kyrgyzstan and Armenia.

On the domestic front, Putin announced a major improvement in the country's demographic situation. He said natural population growth in Russia has been registered for the first time since 1991. But admitted that this trend could be reversed as those born in the 1990s come of age.

Responding to broad public concern, he touched the sensitive issue of interethnic relations, blaming "footloose people from southern republics" , "ethnic mafia", corrupt police and Russian nationalists for increased tensions.

Most of the speech focused on the economy. Putin conceded that although Russia feels the impact of the global economic crisis, its main problems are internal. He stressed the need to increase productivity, where Russia badly lags, Putin said.

He pointed out the fact that many Russian companies remain registered in offshore zones, citing the recent sale of TNK-BP outside Russian jurisdiction as an example. He suggested that legislation should be adopted which forces such companies to pay taxes in Russia, even if they wish to remain registered abroad. He also stressed the need to increase transparency of regulation bodies and reduce their pressure on businesses.