Putin Strikes Back After U.S. Slam

Russian President Defends His Policies In Veiled Response To Cheney

(AP) 

He said that the new missiles and warheads, which can change direction in flight, will allow Russia to preserve a strategic balance without damaging the nation's economic development goals.

Putin also said Russia should focus on investment and innovation to win its deserved place in the world economy. He called on the government to work more effectively to raise Russians' standard of living, making a customary — though so far ineffective — dig at state corruption. A number of officials "have enriched themselves at the cost of the majority of citizens," he said.

Putin acknowledged that his goal of doubling the gross domestic product within a decade now looks unlikely, due to growth falling slightly short of expectations in the last couple of years.

However, he stressed that overall economic developments have been positive, and took credit in particular for the explosive growth in the market capitalization of gas monopoly OAO Gazprom over the last year.

"This didn't happen by itself ... but as the result of certain actions by the Russian government," Putin said.

He identified obsolete equipment and poor energy efficiency as two of the factors holding back the Russian economy's competitiveness. Much of the equipment produced in Russia is "decades out of date," he said, and "energy efficiency is much lower than in competing nations."

In another apparent barb aimed at the United States, he said countries should not use Russia's World Trade Organization membership negotiations as a vehicle to make unrelated demands.

"The negotiations for letting Russia into the WTO should not become a bargaining chip for questions that have nothing in common with the activities of this organization," Putin said.

In April, U.S. senators visiting Moscow said Russia's democracy record and its stance in the Iranian nuclear crisis would influence Congress as it considers Moscow's bid to join the global trade body.

Expressing concern over what he said was an annual decline of nearly 700,000 people a year, Putin said that childcare benefits should be increased and other incentives created to raise the birthrate.

"We must at least stimulate the birth of a second child," said Putin, lamenting that concerns about housing, health care and education and income prompt many families to stop at one.