Russian president Vladimir Putin says West behaving like 'empire'; reassures Russians over economy

Updated

Russian president Vladimir Putin has accused the West of behaving like "an empire", and has reassured Russians over the country's dire economy during his annual, end-of-year news conference.

The Russian leader said the country was more and more determined to protect its interests.

He also ratcheted up his anti-Western rhetoric, accusing the West of treating other countries like their underlings.

"Our (Western) partners have not stopped. They decided that they are winners, they are an empire now and the rest are vassals and they have to be driven into a corner," Mr Putin said, referring to raging tensions with the West over Ukraine.

He accused the West of wanting to tame the legendary Russian bear, saying the real goal was not to punish Moscow for seizing Crimea from Ukraine in March, but to neutralise the country's independence.

"As soon as they have torn out its claws and teeth, then the bear won't be needed at all - they will make a stuffed dummy out of it," he said.

As soon as [the West] have torn out [Russia's] claws and teeth, then the bear won't be needed at all - they will make a stuffed dummy out of it. Russian president, Vladimir Putin

"This is not about Crimea, the thing is that we are protecting our independence, its sovereignty and its right to exist."

He said that Kiev was wrong to use armed forces against separatists in eastern Ukraine.

Mr Putin said that Russia did not invade any other country and that it had just two military bases abroad, while, he said, the US had such bases all over the world.

The European Union and the US have imposed several rounds of sanctions on Moscow over the seizure of Crimea and because of its backing for pro-Russian separatists in a conflict that has killed more than 4,700 people.

While Mr Putin was speaking the EU imposed additional sanctions on Crimea, banning investment and restricting trade to force the message that the bloc will not recognise Russia's "illegal annexation" of Ukraine territory.

Mr Putin also criticised NATO's eastward expansion following the fall of the Berlin Wall.

Putin reassures Russians rouble will rise again

Mr Putin said during his address that Russia's economy would rebound after the rouble's collapse against the dollar, but warned that it could take two years for the country to emerge from crisis.

Russia's economy is heading into recession in what one minister called a "perfect storm" of low oil prices, Western sanctions in the Ukraine crisis and global economic problems. The rouble is down 46 per cent against the dollar this year.

Russians have rushed to exchange their savings and authorities have spent billions of dollars to prop up the beleaguered currency.

Mr Putin said his government did not plan to issue orders to domestic exporters to sell their foreign-currency earnings to support the rouble.

Under pressure to show he has a plan to pull Russia out of crisis, Mr Putin said he supported the actions of the central bank and government in the crisis he blamed on external factors.

"If the situation develops unfavourably, we will have to amend our plans. Beyond doubt, we will have to cut some [spending]," Mr Putin said.

"But a positive turn and emergence from the current situation are unavoidable.

"The growth of the global economy will continue and our economy will rebound from the current situation."

He said Russia must diversify its economy to reduce dependence on oil, its major export and a key source of state income.

Mr Putin had been silent as the currency collapsed this week before recovering some ground.

A prominent opponent, former prime minister Mikhail Kasyanov, said the crisis showed Mr Putin had mismanaged the economy and that he should organise free elections to quietly end his almost 15-year domination of Russia.

"Russia is going into decline," Mr Kasyanov said in an interview late on Wednesday, suggesting Mr Putin should accept that "he needs an exit strategy" to leave power.

Opinion polls show Mr Putin has sky-high popularity ratings since annexing the Crimea peninsula from Ukraine, but the rouble's decline and Russia's slide towards recession could erode their faith in his ability to provide financial stability.

Putin says 'he is loved and loves in return'

Mr Putin also let slip during his annual news conference that he "loves" and is loved in return, but refused to reveal the identity of his mystery partner.

Asked by a journalist whether he loved someone, Mr Putin said "I do, I tell you".

When asked whether someone loved him back, he said briefly that the person "loves me". He refused to give any more details, saying: "Everything is in order. Don't worry."

The 62-year-old president is sometimes referred to as Russia's most eligible bachelor after he announced a divorce from his wife of 30 years, Lyudmila, who shared his years as a spy in East Germany.

Mr Putin said on Thursday that he maintained "good, friendly relations" with Lyudmila.

In 2008, a Moscow newspaper reported that he was to marry Alina Kabayeva, a former Olympic rhythmic gymnast 31 years his junior, who was then an MP in the ruling party.

Mr Putin angrily denied the report and the intrusion into his personal life.

The newspaper shut down shortly afterwards.

Reuters/AFP

Topics: world-politics, unrest-conflict-and-war, business-economics-and-finance, foreign-affairs, government-and-politics, russian-federation, united-states

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