Putin also claimed that sanctions will help spur Russia on to meet its economic goals, belying the slowdown in economic growth since the regime began. He trumpeted the country's military strength.
"No one will secure military superiority over Russia," Putin said. "We have sufficient strength, will and courage for our defense."
As expected, he played on nationalist heartstrings by stating that some countries want to see Russia dismantled like Yugoslavia, the former Soviet bloc country which was broken into six.
The general tone of the speech was "pretty aggressive, anti-Western rhetoric," according to Timothy Ash, head of emerging markets research at Standard Bank.
With a plummeting ruble and oil price, spiraling inflation, and the prospect of more stringent sanctions from Western powers, Russia's short-term economic prospects are falling faster than the temperature during a Siberian winter.
The ruble fell sharply against the U.S. dollar as Putin began speaking, although it later recovered some ground as he mentioned efforts to bring capital back to the country, and to make it easier to do business there.
Putin also blamed the weakness of the ruble on a "speculative attack".