President Vladimir Putin says Russia has no intention to launch a new arms race, but will respond to all security challenges.

Addressing a meeting in Moscow Wednesday on weapons modernization plans, Putin said Russia will focus on developing new strategic nuclear weapons, aerospace defenses and high-precision conventional weapons.

He said potential threats to Russia's security must be thoroughly analyzed, and an "adequate response" given to each of them. Putin added that Russia shouldn't hike its military spending beyond its economic capabilities.

Russia-West relations have plunged to their lowest point since the Cold War times over the crisis in Ukraine. A NATO summit last week decided to create a rapid-reaction "spearhead" force to protect Eastern Europe from Russian bullying. Putin said that the West used the Ukrainian crisis to "resuscitate NATO."