MOSCOW, Dec. 4-- Russia depends on itself for economic development while remaining open to world investments and not interested in arm races, Russian President Vladimir Putin said Thursday in his annual State of the Nation address.

Western sanctions encourage Russia to attain more economic efficiency, Putin said, stressing that the government should overcome disorganized administration, irresponsibility and bureaucracy, which are "direct threats to our security."

The government is tasked with solving the problem of high inflation and ensuring economic growth at the same time, as well as reversing the depreciation of the Russian ruble, Putin said to the parliament.

He added that the Central Bank and other relevant departments have been asked to take harsh and coordinated measures to fight speculators in the currency market.

"The Central Bank has moved to a floating exchange rate, but it doesn't mean that the bank would give up impacting the ruble's exchange rate or that the ruble would become a financial speculation factor with impunity," Putin said.

Meanwhile, Putin said Russia is not to engage in a costly arms race and will not seek self-isolation despite current challenges.

"No one can reach military superiority over Russia ... We've got enough strength, will and courage to defend our freedom," Putin stated.

The U.S. global missile defense system, he said, threatens the security of not only Russia, but the entire world.

"I think it is detrimental to the United States itself, as it creates a dangerous illusion of invincibility and increases the desire for unilateral and, as we often see, injudicious decisions," Putin said.

Russia, he noted, will not bow because "the more we retreat, the more our opponents will behave cynically and aggressively."

The president ruled out curtailing cooperation with Europe and the United States, adding that Moscow will restore and broaden traditional ties "with the south of the American continent and will continue cooperation with Africa and Middle Eastern countries."

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