Putin vows to boost Russian economy in fourth term

Vladimir Putin on Monday launched his fourth term as president with an ambitious call to vault Russia into the top five global economies by developing its technological products and agricultural exports.

Putin, who has sought to restore Russia's military and diplomatic prominence on the world stage, focused almost entirely on domestic issues in his speech after taking the oath of office in a vast, vaulted Kremlin hall glittering with gold leaf.

Improving the economy following a recession partly linked to international sanctions will be a primary goal of his next six-year term, Putin said.

"Russia should be modern and dynamic, it should be ready to accept the call of the times," he said in his inauguration speech to thousands of guests standing in three halls of the Grand Kremlin Palace.

Putin later issued an extensive decree calling for "acceleration of the technological development of the Russian Federation" and "creation of a high-performance export-oriented sector in the basic sectors of the economy, primarily in manufacturing and the agro-industrial sector."

The 65-year-old former KGB agent, who has led Russia for all of the 21st century either as president or prime minister, has been criticised for inadequate efforts to diversify the economy from its dependence on oil and gas exports or develop the manufacturing sector.

Russia's economy was hit hard by low world oil prices and sanctions connected to Moscow's 2014 annexation of Crimea and military involvement in the separatist uprising in eastern Ukraine, with the rouble losing half its value between 2014 and 2016.

BOOSTING GDP

The country recorded an anaemic improvement in 2017, with gross domestic product rising 1.5 per cent and the rouble recovering some of its value. But the currency dropped about 8 per cent again last month after new United States sanctions.

In the decree, he foresaw Russia becoming one of the world's top five economies by the end of his term in 2024. That would require boosting GDP by some 50 per cent; Russia currently places about 12th in rankings of world economies.

Putin made only a brief reference to global affairs in his speech, saying "Russia is a strong, active, influential participant in international life. The security and defence capability of the country is reliably ensured. We will give these matters the necessary constant attention."

He acknowledged that the challenges facing Russia were formidable "but we all remember well that, for more than 1,000 years of history, Russia has often faced epochs of turmoil and trials, and has always revived as a Phoenix, reached heights that others could not."

Putin was re-elected in March with 77 per cent of the vote.