Russian president Vladimir Putin said his country would stand up for itself but not at the cost of confrontation with the outside world.

Mr Putin was speaking to Russian ministers and members of parliament in Crimea - the Ukrainian region annexed by Russia this year - a stage that had led many people to anticipate a major announcement about Ukraine.

He avoided the kind of barbs that he has previously directed at Western countries during the crisis, which has dragged East-West relations to their lowest ebb since the Cold War.

"We must calmly with dignity, and effectively, build up our country, not fence it off from the outside world," Mr Putin said.

"We need to consolidate and mobilise but not for war or any kind of confrontation... for hard work in the name of Russia."

He also said Russia would do everything in its power to end the conflict in Ukraine as soon as possible and stop the bloodshed there.

The comments came amid reports a convoy carrying aid from Moscow to eastern Ukraine appeared to be heading for the rebel held area around Luhansk, despite opposition form Kiev.

The BBC reports a 100-strong convoy had turned off the motorway in western Russia to approach the border with Ukraine.

Ukrainian authorities on Wednesday refused permission to the convoy to actually enter Ukraine territory, insisting that the whole operation actually had to be cleared and coordinated by the International Red Cross.

Kiev and the West is deeply suspicious of the aid mission and believes it could be used by the Russians as a cover for some kind of military operation.

Foreign Minister Julie Bishop warned Russia against sending the convoy into eastern Ukraine, suggestions Moscow described as "absurd" and "irresponsible".

Russia has 'various ways' of protecting national interests: Putin

In Crimea Mr Putin said Russia's foreign policy doctrine should be peace-loving.

Vladimir Putin said Russia's foreign policy doctrine should be peace-loving. ( Reuters: Alexander Zemlianichenko/Pool )

"All our partners in the world should understand that Russia, like any other large, powerful sovereign state, has various ways and means of ensuring its national interests, and these include armed forces," he said.

"But this is not a panacea and we do not intend, like some people, to dash around the world with a razor blade and wave that blade around.

"But everyone should understand that we also have such things in our arsenal."

Many of Mr Putin's critics in Western capitals say he has made dovish comments before, but that this has not been matched by actions on the ground.

European countries and the United States allege that Russia is supplying arms to separatists in eastern Ukraine.

The stand-off over Ukraine is now becoming much more costly for both sides, with the EU and United States imposing economic sanctions and Russia retaliating by banning imports of many food products.

Reuters/BBC