Putin hails Russia's economic might

MOSCOW, Feb 1 (Reuters) President Vladimir Putin hailed Russia's strong economic growth at his annual news conference today but denied that the country was using its financial muscle for political purposes.

Russia has been repeatedly criticised in the West for using its vast energy resources as a political weapon to reward allies and punish countries failing to toe the Kremlin's line.

''We are always told that Russia is using its ... economic resources to achieve its foreign policy aims. This is not the case,'' Putin told journalists in the Kremlin's Round Hall.

Speaking seated at a dais flanked by two giant television screens, Putin said that although Russia's GDP had reached 1 trillion dollar last year, the top priority was still to raise living standards and narrow Russia's gap in incomes.

''Everything has to be subordinated to raising living standards and the quality of life,'' Putin said.

Some 1,232 foreign and Russian journalists registered to attend the news conference, a record number since Putin's first annual news conference in 2001, according to the presidency.

Answering a question about who would succeed him when his second and final term of office expires next year, Putin said he would not orchestrate a succession.

''There will be no successor. There will be candidates for the post of president,'' he said. ''The authorities' goal is to ensure the elections are held democratically''.

Putin has enjoyed consistently high poll ratings and whoever he endorses as candidate is expected to win the next presidential election easily. The president has so far given no hints about whom he might back.

Normally lasting several hours, Putin's news conference comes at a time when Russia's relations with the West are at their lowest ebb in years following the murders of two fierce Putin critics last year and rows over energy policy.

REUTERS AKJ BST1552