President Putin blasts the West in speech to Kremlin

Russian president Vladimir Putin has attacked the West for its sanctions on Russia during a rousing speech to the Kremlin.

In his annual state of the nation address to the government, Mr Putin said western countries including Australia wanted to see Russia crumble like Yugoslavia following the breakup of the Soviet Union.

"Whenever anyone thinks Russia has become strong, they resort to this instrument," he said.

He appealed to the patriotism of Russia's citizens, calling on them to stay strong as the country's economy continues to struggle.

He also defended Russia's actions in Ukraine and said separatist Islamic rebels in Chechnya had benefited from foreign support, though he stopped short of naming any countries.

Militants attacked the capital of Grozny just hours before Mr Putin's speech, adding the the unrest and instability in the region.

However, Mr Putin ended his speech on a strong note.

"We are ready to meet any challenge of the times and win," he said.