Putin wants Russia to double size of economy

President Vladimir Putin urged Russians yesterday to help his administration alleviate poverty, boost the economy and bring peace to war-ravaged Chechnya, where suicide bombers killed more than 75 people this week as part of the rebels' campaign to escape Moscow's rule.

Delivering the annual state of the nation address in the Kremlin's vast Marble Hall, Mr Putin rallied his countrymen to slash bureaucracy and double the size of Russia's economy over the next decade. He also drew applause from hundreds of assembled politicians by pledging to introduce a new generation of strategic weapons as part of plans to modernise the nation's bloated armed forces.

Without specifically referring to the suicide attacks that rocked Chechnya this week, Mr Putin again declared that life was slowly but surely returning to normal in the republic after two wars since 1994 between Moscow and separatist rebels.

"Of course, through threats, murders and terrorist acts, the remaining bandits will try to scare the republic's people and sabotage the dynamically developing political process," Mr Putin said, alleging that most rebel attacks were now aimed at civilian rather than military targets.

"But we will see this through to the end," he pledged. "Chechnya's people will live a normal, civilised life."

Dressed in a dark blue suit and maroon tie, a stern Mr Putin used his hour-long speech to concentrate on domestic issues rather than foreign policy, with an eye to parliamentary elections in December and a presidential vote next March.

Responding to criticism from both the Communist Party and liberal opponents that he was neglecting the underprivileged in favour of big business, Mr Putin told politicians to help the tens of millions of Russians who live below the poverty line, and not overestimate the growth achieved since the 1998 financial crash.

"I must say that the economic results achieved are modest, very modest," he said.

"Firstly, almost a quarter of Russian citizens have income that is below the poverty line - yes, a quarter. Secondly, economic growth remains highly unstable." In 10 years we have to double the country's gross domestic product," Mr Putin said.

"That will require the consolidation of all the political forces in the country."