Russia's Putin launches tirade against West's "arms race"

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Laying out his legacy three months before he is to step down, Putin said Russia had to wean itself off energy exports, compete in the world economy and stand up to the West.

In an address containing long passages of tough rhetoric aimed at the West, Putin said NATO expansion and U.S. plans for a missile defence shield in eastern Europe had touched off an arms race.

"It's not our fault, we didn't start it. ... funnelling multibillions of dollars into developing weapons systems. NATO itself is expanding. It's approaching our borders. We drew down our bases in Cuba and in Vietnam. What did we get? New American bases in Romania, Bulgaria. A new third missile defence region (the U.S. defence shield) in Poland, where it's being built," Putin told the State Council.

"It's already clear that a new arms race is being unleashed in the world ... We must not allow ourselves to be drawn into this," he said.

Putin's address to the State Council, which gathers minister, regional governors and lawmakers, will be one of his last keynote speeches before he steps down.

It was also widely regarded as a manifesto for Dmitry Medvedev, the man he has endorsed to succeed him.

Medvedev, a 42-year-old first deputy prime minister and loyal Putin ally, said this week he was not issuing his own programme because it would be no different from his mentor's policies.

Putin, 55, opened his speech by emphasising how far Russia had come in the eight years he had been in power.

In 2000, Russia was reeling from economic collapse, insurgents were marauding through the country and the Kremlin was being manipulated by tycoons, he said.

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