Putin honours soldiers

MOSCOW, Russia -- The economy and the conflict in Chechnya were the two key issues discussed by Russian President Vladimir Putin during his annual state of the nation speech.

It was the first time the 49-year-old had made the high profile speech to the Duma, or lower house, and the Federation Council, or upper chamber, after being elected almost exactly a year ago.

The president told both chambers that recent data showed there was reason for concern over the economy.

"In the last few months the worsening state of several economic indicators raises concern, especially against the background of the uncertain development of the world economy," he said.

"So far we only have relative economic stability."

Russia last year achieved 7.7 percent Gross Domestic Product (GDP) growth, but this year it is feared to struggle to meet its 4 percent target.

The president also paid tribute to the soldiers fighting in the breakaway republic of Chechnya and asked delegates to stand in memory of their "heroes."

He signalled a switch in policy in the region away from purely a purely military tactic to a more social and economic route for stabilising relations.

"We should not make unjustified promises," he said.

"We must be responsible for protecting social and people's rights and solve economic issues which requires a professional approach and bravery on our part to prevent terrorism and results of crimes we are not able to prevent."

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