President Vladimir Putin today said Russia would compete in a new "arms race" in a speech to set long term priorities for his hand-picked successor ahead of next month's presidential election.
Mr Putin used the televised address in an ornate Kremlin hall before Russia's ruling elite, including the full government, parliamentary leaders and top generals, to outline a roadmap up to 2020.
Mr Putin said his "plan to bring Russia out of systemic crisis" meant the country was again "respected" and that "lawlessness is over."
However more must be done in coming years to pull the economy from "extreme inefficiency" and to guard against Western pressure, said Mr Putin, whose eight-year presidency has seen a flood of energy export revenues and the return of military clout.
"There is a new turn in the arms race.... Russia will always respond to this new challenge," Mr Putin said, promising "new weapons that are qualitatively the same or better than those of other countries."
The far-ranging nature of the speech underlined that Mr Putin - barred by the constitution from seeking a third consecutive term in the presidential vote and due to step down in May -- remains Russia's dominant leader.
His close ally Dmitry Medvedev, a career lawyer and bureaucrat who has never held elected office, is forecast to win by a landslide in the March 2 election where he faces little meaningful opposition.
Mr Medvedev's main campaign message has been a promise to continue what he calls "the Putin plan."
Mr Putin has said he may serve as prime minister if Mr Medvedev is elected, prompting widespread speculation that the Kremlin master will retain significant influence in years to come - possibly returning for a third, non-consecutive Kremlin term.
Agencies