Putin said Russia agrees to end the Ukraine crisis through negotiations, alongside eliminating the root causes, noting that now "the ball is entirely in the court of Ukraine and its European sponsors."

MOSCOW, Dec. 20 (Xinhua) -- held his annual year-end press conference in Moscow on Friday, taking nearly 80 questions from domestic and foreign reporters and Russian citizens on a wide range of topics, including international relations, geopolitical landscape, and Russia's economic and military development.

The following are the key takeaways from Putin's remarks during his four-and-a-half-hour press conference:

RUSSIA-UKRAINE CONFLICT

Putin reiterated a tough Russian stance in resolving the Ukraine crisis.

Russia agrees to end the Ukraine crisis through negotiations, alongside eliminating the root causes, he said, noting that now "the ball is entirely in the court of Ukraine and its European sponsors."

Underscoring Russia's battlefield advantages, he said that 700,000 Russian troops are currently deployed on the frontlines, advancing along the entire line of contact while Ukrainian forces are in retreat.

The balance of power on the battlefield has shifted decisively in Russia's favor following the expulsion of Ukrainian troops from the Kursk region, he added.

Voicing Russia's readiness to end the conflict in Ukraine through peaceful means, he said: "We are prepared and willing to bring this conflict to a peaceful resolution. This must be based on the principles I outlined in June of last year at the Russian Ministry of Foreign Affairs, alongside the elimination of the root causes that precipitated this crisis."

"We are aware of certain signals indicating that Kiev is ready to engage in some form of dialogue," Putin said, but Russia has not yet seen any indication that Ukraine is prepared to negotiate the territorial issue.

Putin said Ukraine initially accepted the outcomes of the Russia-Ukraine talks held in Istanbul, Trkiye, in 2022, but later reneged on them and now "is practically refusing to bring the conflict to a peaceful end."

Russia largely agreed with U.S. President Donald Trump's proposals on the Russia-Ukraine conflict during their meeting in the U.S. state of Alaska, he said. "To claim that we reject any of these proposals is absolutely incorrect and baseless."

Russia is considering measures concerning the security during elections in Ukraine, including refraining from conducting strikes deep inside Ukraine, according to Putin, who noted that the Ukrainian government must be an elected one to gain legitimacy.

RUSSIA-CHINA RELATIONS

Putin reaffirms Russia's commitment to stable relations with China, depicting Russia-China ties as a crucial factor for global stability.

"The development of Russia-China relations is progressing steadily and consistently," Putin said in response to a Xinhua reporter's question.

Putin said that the two countries have engaged in cooperation across various fields, and two-way trade has amounted to 240-250 billion U.S. dollars.

He said it is gratifying to see that Russia-China cooperation has also made headway in such fields as high-tech manufacturing, science and education, cultural and humanitarian exchanges, and space exploration.

"I hope that we will continue to advance our relations with our Chinese friends in this vein, both in the near term and in the long-term historical perspective," he added.

DOMESTIC ECONOMIC OUTLOOK

Putin stressed that key economic indicators are under control in the country, with GDP growth estimated at 9.7 percent over the past three years, and 1 percent for 2025.

The Russian president said the slowdown in GDP growth is the result of a deliberate effort to curb inflation, a goal being accomplished with the rate expected to drop to 5.7-5.8 percent by the end of the year.

Russia's unemployment rate hit a record low of 2.2 percent in 2025, he added.

The government will strive to increase Russians' household income, such as raising wage levels and beefing up the family support system, notably for those with children, according to Putin.

Russia's budget deficit stood at 2.6 percent of its GDP in 2025, and is expected to narrow to 1.6 percent next year.

Putin added that the international reserves of the Russian central bank have been on the rise. "The total amount stood at 741.5 billion U.S. dollars."

RELATIONS WITH EU

Putin warned the EU against seizing its overseas assets, and called for cooperation.

Putin described the EU attempts to seize the frozen Russian assets as "robbery," warning that such actions could have serious repercussions to Europe's financial credibility and the global financial system, not least by undermining trust in the eurozone and eroding confidence in Europe as a safe destination for reserve holdings.

Russia will defend its interests concerning overseas assets primarily through legal channels, Putin said.

Putin said the West is "fighting Russia by proxy through Ukraine," and dismissed claims that Russia might attack Europe as "nonsense."

Russia has been deceived several times by NATO's promises about non-expansion eastward, and the advance of NATO military infrastructure toward its borders has caused legitimate concern, according to Putin.

He called for cooperation. "We are ready to work with Great Britain, with Europe as a whole, and with the United States, but on an equal footing and with mutual respect," Putin said. "If we ultimately achieve this, everyone will benefit."

The Russian president said that building a new security architecture in Europe is "quite relevant," and that any country's choice of its own means of defense should not threaten other countries.

"If we combined our efforts with European countries, our combined GDP measured by purchasing power parity would be larger than that of the United States," Putin said. "This is theoretical, of course, but it is absolutely clear that by uniting and complementing our capabilities, we would prosper instead of fighting each other."

MILITARY CAPACITY DEVELOPMENT

"The Russian military has become one of the most combat-effective armed forces in the world," the Russian head of state said. In 2025, over 400,000 personnel signed contracts to join the Russian Armed Forces.

Putin said Russia has emerged as a leader in the field of unmanned aerial vehicles (UAVs). A shortage of heavy-duty UAVs is currently engaging dedicated efforts by the defense and industrial sectors.

Meanwhile, he stressed Russia opposes the deployment of weapons in space. "To be clear, we are against the deployment of weapons in space in general. There is no such threat at present," he added.

"We're not saying that any country doesn't have the right to choose its own method of defense, but it should be a method that doesn't threaten anyone, including us," Putin said.