Russian President Vladimir Putin gives his annual state of the nation address in the Kremlin in Moscow, capital of Russia, on Dec. 4, 2014. (Xinhua/RIA Novosti)

Russia seeks for more independent economic development and has proved its national strength amid Western sanctions, President Vladimir Putin said Thursday.

URGING ECONOMIC SELF-DEVELOPMENT

Russia depends on itself for economic development, remains open to world investments and is not interested in arm races, Putin said in his annual state of the nation address to the Federal Assembly.

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

Russian economy should get out of the trap of zero growth rate and reach an above-world-average development rate in the coming three to four years, so as to increase its share in the global economy and therefore strengthen economic independence, Putin said in the Kremlin Palace.

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 added.

Inflation rate should be brought down below 4 percent, while annual labor productivity should be no less than 5 percent, according to Putin.

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.

More proposals were made by the president to ensure a more independent Russian economy, such as the establishment of a new and transparent supervision system between business and government by 2015 in order to prevent obsessive governmental control, as well as a one-time full amnesty for repatriated offshore capital.

Alexei Makhlai, president of the Social Policy Research Center, a non-governmental organization, said Putin's capital amnesty proposal could succeed and help revive the stagnated economy.

"Putin hinted that the authorities would consider repatriation of the assets not only as an economic move, but also as a political sign of support to the Russian state, as a manifestation of patriotism," he told Xinhua.

Meanwhile, Maxim Osadchy, head of analysis at Moscow-based Corporate Finance Bank, disagreed, citing the lack of trust between businessmen and politicians.

"The other thing is, the investors' behavior depends on real economic situation much more than on any politician's words," the expert told Xinhua.

Russia's economy has been hit hard due to the continuous fall of world oil prices and Western sanctions, with the country's Economic Development Ministry estimating a 0.8 percent contract in 2015. The Russian currency, ruble, has also lost nearly 40 percent of its value against dollar and euro.

HAILING NATIONAL STRENGTH

The events of the departing year demonstrated Russian state and people's strength and proved the necessity for the country to remain strong and sovereign amid Western pressure, Putin noted.

"This year we have passed through trials that only a mature and united nation, a truly sovereign and strong state can cope with," Putin said at the beginning of the address.

He accused the United States of its attempts to influence the relations between Russia and neighboring countries "directly or indirectly."

Russia has respected and will always respect the inalienable right of every nation, including Ukraine, to choose its own path of development, allies as well as political and economic systems, Putin said.

Current focus should be on the peaceful resolution of the Ukraine crisis, as well as political and economic reform of Ukraine, "instead of politicking and empty promises," he said.

"(The West) attempts to contain Russia's growing influence. If it wasn't for sanctions, they'd invent something else. But it's senseless to talk to Russia from the position of force, even when Russia faces internal difficulties," Putin said.

While pointing out that western sanctions also hurt those who initiate them, Putin stressed that Russia will not bow because "the more we retreat, the more our opponents will behave cynically and aggressively."

Putin ruled out curtailing cooperation with Europe and the United States, saying 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."

The president stressed 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.

Putin warned that the U.S. global missile defense system threatens the security of not only Russia but the entire world, bringing possible disruptions of the strategic balance of forces.

"After the U.S. unilaterally withdrew from the Anti-Ballistic Missile Treaty in 2002, it continues intense work to set up a U.S. global missile defense system, including in Europe," Putin said.

"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."