In his annual state-of-the-nation address on 10 May, President Vladimir Putin focused on some of the threats facing the country.

"We have an opportunity in the modern situation of today to evaluate, in a more sober fashion and calmly, the threats that Russia is coming up against as part of the world system, threats that present a danger to internal development and the international interests of our country. We can also talk in greater detail about our place in the world economy.

"In conditions of harsh international competition, the country's economic development must be determined mainly through its scientific and technological advantages. But unfortunately the greater part of technological equipment used right now in Russian industry lags behind advanced levels by not just a year but decades, while the efficiency of energy use, even with reference to climate conditions, is many times lower in our country than in those of Russia's direct competitors on world markets. Yes, we know, our industry, our economy was built in such a way back in Soviet times. But just recognising this is frankly not enough.

We need to take specific measures in order to change the situation, but without damaging the financial stability that has been attained, and we need to take a serious step to stimulate investment growth in the production infrastructure and in the development of innovation."