Russian President Vladimir Putin cautioned Western nations, stating that sending troops to engage in the war in Ukraine could lead to the risk of provoking a nuclear war.

"We did not start this war in Donbas. As I have said many times, we will do everything to end it, to eradicate Nazism. To fulfill all the tasks of the special military operation. To protect the sovereignty and security of our citizens," he stressed.

Meanwhile, he emphasized that Moscow possesses the capability to target locations in the West with its weapons. The ongoing war in Ukraine has resulted in the most significant crisis in Moscow's relations with the West since the Cuban Missile Crisis of 1962. While Putin has previously expressed concerns about a confrontation between NATO and Russia, his nuclear warning on Thursday marked one of his most unequivocal statements on the matter.

Speaking to legislators and prominent figures within the nation's elite, Putin reiterated his assertion that the West is committed to undermining Russia. He indicated that Western leaders might not grasp the potential peril of their interference, characterizing it as meddling in what he perceives as Russia's internal affairs.

Before issuing his nuclear warning, Putin specifically mentioned a proposal put forth by French President Emmanuel Macron on Monday. The idea involved European NATO members deploying ground troops to Ukraine, but this suggestion was promptly dismissed by the United States, Germany, Britain, and other nations.

"The West provoked the conflict in Ukraine, in the Middle East, in other regions of the world, and continues to lie, without any embarrassment, saying that Russia allegedly intends to attack Europe," the Russian President maintained.

Due to that, "[Western nations] must realize that we also have weapons that can hit targets on their territory. All this really threatens a conflict with the use of nuclear weapons and the destruction of civilization. Don't they get that?!" Putin added.

In anticipation of the presidential election scheduled for March 15-17, Putin praised Russia's extensively modernized nuclear arsenal, which he claimed is the world's largest.

Elsewhere in his remarks, he mentioned that the new-generation hypersonic nuclear weapons, which he initially discussed in 2018, have either been deployed or are in the final stages of development and testing.

"Strategic nuclear forces are in a state of full readiness," the Russian President confirmed.

Concerning the hypersonic dagger aircraft system, he maintained that "it has not only been put into service but is also being used with high efficiency to hit particularly important targets in the course of the special military operation."

As for Zircon, the hypersonic sea-based complex, he confirmed that it has already been used in battle, whereas "the hypersonic units of the intercontinental range Avangard (and) the laser systems Peresvet are on combat duty. The tests of the Burevestnik unlimited-range cruise missile are being finalised. And the unmanned underwater vehicle Poseidon... The first mass-produced Sarmat heavy ballistic missiles have been delivered to the troops."

In a visibly impassioned address, Putin offered a cautionary note to Western politicians, urging them to heed historical lessons.

He recommended that Western politicians reflect on the outcomes faced by historical figures such as Adolf Hitler of Nazi Germany and Napoleon Bonaparte of France, both of whom had failed in their attempts to invade Russia in the past.

"But now the consequences will be far more tragic," said Putin. "They think it [war] is a cartoon," he said.

He also accused Western politicians of having a limited understanding of the true nature of war due to their lack of experience with the security challenges faced by Russians over the past three decades.

Addressing the dynamic situation on the ground in Ukraine, Putin stated that Russian forces currently hold the advantage on the Ukrainian battlefield, making advancements in multiple locations. Additionally, he emphasized the need for Russia to reinforce its deployed troops along the western borders with the European Union. This decision comes in response to Finland and Sweden opting to join the NATO military alliance.

'Moscow will not be pulled into arms race by the West'

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On the West's claims that Russia wants to extend its operations beyond Ukraine, the Russian President rejected this notion, calling it "nonsense." He highlighted that Moscow would not replicate the Soviet Union's error of being pulled into an arms race by the West, cautioning against a scenario where excessive budget allocation would be diverted toward military expenditures.

"Therefore, our task is to develop the defence-industrial complex in such a way as to increase the scientific, technological, and industrial potential of the country," he said.

Regarding the US–Russia Strategic Stability Dialogue (SSD), Putin expressed Moscow's willingness to engage in discussions regarding it. However, he indicated skepticism, suggesting that Washington lacked genuine interest in such talks and was more inclined toward making unfounded claims about Moscow's purported intentions. He described the US statement on readiness for talks on strategic stability as "demagoguery".

"Recently there have been more and more unsubstantiated accusations against Russia, for example, that we are allegedly going to deploy nuclear weapons in space. Such innuendo... is a ploy to draw us into negotiations on their terms, which are favorable only to the United States," he said.

Concerning the upcoming US elections, Putin said,"...On the eve of the US presidential election, they simply want to show their citizens and everyone else that they still rule the world."

On Russia's political system, with an aim at the West

"Russia's political system is one of the pillars of the country's sovereignty. We will continue to develop the institutions of democracy and will not allow anyone to interfere in our internal affairs," Russian President Vladimir Putin stressed. 

Taking aim at the West "with its colonial behavior and habit of fomenting national conflicts around the world," he described how it "seeks not just to hold back our development - instead of Russia, they want a dependent, declining, dying place where they can do whatever they want."

Economic ascendancy: Putin foresees Russia's soaring purchasing power

On Russia’s economy, Putin assured that it is on track to become one of the world's top four in terms of purchasing power parity. However, he cautioned that addressing labor and technology shortages is crucial for Moscow to attain its economic objectives.

Despite a robust rebound in Russia's gross domestic product (GDP) last year, fueled significantly by state-funded arms and ammunition production for the war in Ukraine, underlying issues persist, hindering improvements in the living standards of Russians.

It is worth noting that the Russian economy has experienced a degree of diversification away from raw materials, evident in a 25% increase in non-oil and gas budget revenues in 2023.

Putin drops hints at elevated taxes in Russia

In his speech, Putin suggested the possibility of increased taxes for affluent individuals and companies, emphasizing the necessity for a more equitable distribution of the tax burden. He called on Russian businessmen to invest within the country.

"I propose thinking about approaches to modernizing our fiscal system, to a fairer distribution of the tax burden towards those with higher personal and corporate incomes," he said.

"Conversely, lowering the tax burden on families through deductions is needed, stimulating businesses that invest funds in development, in the implementation of infrastructure and social projects," Russia's President added.

He directed the government and the State Duma to present concrete proposals promptly. He emphasized the importance of safeguarding the assets and property rights of businessmen who invest in Russia and advocated for a reduction in taxes for small and medium-sized businesses in the country.

Family first: Putin pledges increased state support as election approaches

Putin also suggested enhanced tax allowances for families with children and additional financial support for regions experiencing low birth rates. Russian authorities have long grappled with demographic challenges.

Just this month, Putin encouraged Russian families to have a minimum of two children to ensure the "ethnic survival" of the nation, advocating for three or more to foster development and prosperity.

He announced the allocation of a minimum of 75 billion rubles ($825.51 million) to regions experiencing below-average birth rates by the year 2030. He also suggested extending preferential mortgage and maternity capital programs until the same year.

"Constant work aimed at improving the quality of life for families with children and supporting the birth rate is needed," Putin said.

In the announcement of a new national initiative named "Family", he addressed the persistent issue of poverty, highlighting its direct impact on 9% of the population and an even higher rate of over 30% among large families. The objective is to reduce these rates to below 7% and 12%, respectively, by the year 2030. 

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