Putin gives last annual report to parliament before polls

Prime Minister Vladimir Putin said on Wednesday Russia was emerging powerfully from the global financial crisis but must reduce its reliance on energy and raw materials to see off external threats to its economy.In a speech to parliament, he did not say whether he and President Dmitry Medvedev had agreed which of them would run in next years presidential election, but underlined his own credentials by outlining his governments economic achievements.Putin told the State Duma lower house in his more than two-hour annual report that inflation would not exceed 6.5 to 7.5 percent in 2011 and gross domestic product grew by 4.4 percent in the first quarter of the year. He also made a number of promises likely to please voters, including putting aside $2.7 billion for a possible increase in state pensions in August. Other spending pledges included support for farmers, teachers and the military.But he said Russia faced unspecified external threats to its $1.5 trillion economy and the country of 143 million people could not afford to sit back after overcoming the worst of the financial crisis. High oil prices helped fuel Russias economic resurgence during Putins 2000-2008 presidency and the price of oil, Russias main export commodity, is up 28 percent this year.But the economy is over-reliant on energy and raw material exports, and any fall in the oil price will have a big impact on its overall economic performance unless it diversifies.