Russia will be open to the world for collaboration, foreign investments, implementation of joint projects," Putin said.
Putin also stated that Russia will not end its relations with Europe and the United States."
"It [Russia] will restore and enhance the traditional ties with the South of the American continent, will continue cooperation with Africa, with Middle East," Putin said.
Relations between Russia and the West began to deteriorate dramatically since the beginning of the Ukrainian conflict.
Over the past few months, the United States and a number of its allies introduced several rounds of sanctions against Russia, accusing it of meddling in Ukraine's affairs. The sanctions particularly targeted the country's banking, defense and energy sectors.
Russia has repeatedly denied the allegations and called the sanctions counterproductive. At the same time, it has increased economic cooperation with Asia-Pacific countries, the BRICS and Latin America.
According to the Russian constitution, the president addresses parliament every year with a speech focusing on the country’s current situation and on the main aspects of domestic and foreign policy. Leaders of the Constitutional, Supreme and Arbitration courts, regional governors, heads of traditional religions and other prominent public figures take part in the event along with deputies and senators.
The first address was made by Boris Yeltsin on February 24, 1994. This year, this tradition celebrates its 20th anniversary.
Russia Needs to Increase Stability of Its Banking System
Russia needs to stabilize its banking system to develop its economic competitiveness, Russian President Vladimir Putin said Thursday.
“Our savings should work for the national economy and should provide for development and not call for capital flight out of the country. In order to do this, it is necessary to increase the stability of the banking system,” Putin said during his annual state of the nation address to the Federal Assembly.
On November 5, Russia's Central Bank said that it had drastically decreased its support for the ruble, which weakened the currency. The bank added it was pursuing a transition to free-floating currency exchange rates.
On November 10, Central Bank head Elvira Nabiullina announced that Russia's banking system remains stable despite considerable shifts in the ruble's exchange rate.
The ruble's value began its dramatic decline this spring following geopolitical tensions and a fall in oil prices. This led the Russian Economic Development Ministry to update its inflation rates forecast for 2014, raising the figure to 7.2 percent from 6 percent initially predicted.
Russia Should Learn How to Combine Holding Down Inflation and Stimulating Growth
“We need to preserve a sustainable macroeconomic situation and have an inflation of 4 percent in the middle term, but, I repeat, not through suppressing business activity. We must finally learn how to combine two targets – holding down inflation and stimulating growth,” the president said during his annual state-of-the-nation address.
He said that Russia’s savings should become a source for investing in development.
“Our savings should work for the national economy and be directed at development, not at assisting capital outflow,” he said.
