Moscow - Russian President Vladimir Putin, under pressure to show a path out of the country's economic misery, predicted Thursday a recovery in two years despite mounting bad news: a looming recession, a severely weakened ruble and growing fears about the financial instability.

While Russia's economic storms dominated Putin's annual year-end news conference, Putin thrashed his way through an array of other topics - at times combative, wry and evasive - as he fielded questions from the national and foreign media.

It was, in many ways, a highlight reel of his biggest challenges of the year.

He defended Russia's annexation of Crimea and Moscow's policies in Ukraine's conflict, and blasted the West for its sanctions in return. He defiantly described Russia as a bear that cannot be chained, yet playfully noted that leaders make mistakes and dodged questions over whether he will seek re-election in 2018.

But attention always circled back to the Russia's deepening fiscal quagmire, which has pushed Putin into an uncomfortable role as crisis manager.

Putin's news conference came as Russia suffers through its most serious economic downturn since a 1998 meltdown shortly before Putin's rise to political power. The current troubles also represent a major test for Putin, whose reputation is largely built on safeguarding Russia's strength and stability.

"Rates of growth may be slowing down, but the economy will still grow and our economy will overcome the current situation," Putin said at the televised news conference. "I believe about two years is the worst-case scenario. After that, I believe growth is imminent."

The ruble has been on a steady downward trajectory for months, fueled by falling oil prices - Russia's main export - and Western economic sanctions over Russia's involvement in neighboring Ukraine.

In the past week, however, the ruble has faced wild swings in value. Exchange rates peaked at almost 80 rubles to the dollar Tuesday after the central bank dramatically raised interest rates.

The ruble lost more ground Thursday despite central bank action to shore up the currency, which is around 45 percent down against the U.S. dollar this year. A weakened currency drives up prices, makes it harder for companies to repay loans that were taken out in dollars or euros, and waters down Russians' savings.

Putin had been silent as the currency collapsed this week. On Thursday, he acknowledged partly that Russia had helped to lay the groundwork for the current crisis by failing to diversify the economy.

But, in general, he blamed "external factors, first and foremost" for creating Russia's situation - accusing the West of intentionally trying to weaken Russia.

"No matter what we do they are always against us," Putin said, one of a series of observations directed at how he said the West has been treating Russia.

Putin attributed Western sanctions that have targeted Russia's defense, oil and gas and banking sectors for about "25 percent" of Russia's current difficulties.

But Putin stood firm over the actions that brought on the Western backlash, including Russia's annexation of Ukraine's Crimea peninsula and subsequent support for pro-Moscow rebels in eastern Ukraine . Putin repeated Moscow's claim that Russia has not directly aided the rebels.

"Taking Texas from Mexico is fair, but whatever we are doing is not fair?" he said, in comments seemingly directed at the United States.

Putin also suggested that the West was demanding too many concessions from Russia, including further nuclear disarmament. Likening Russia to a bear - a longtime symbol of the country - he chided the West for insisting the Russian bear "just eat honey instead of hunting animals."

"They are trying to chain the bear. And when they manage to chain the bear, they will take out his fangs and claws," Putin said. "This is how nuclear deterrence is working at the moment."

The news conference was heavily promoted on Russian state television Wednesday in a 40-second trailer with images of Russian triumph against the perils of the world.

Despite the economic woes, an Associated Press-NORC Center for Public Affairs Research poll released Thursday found that some 80 percent of Russians still support him.

The Kremlin views the crisis not just as an economic threat but as a danger to Russia's fundamental security. The Russian Security Council said Wednesday it had drawn up a response plan and given it to Putin to review.

The head of the council, Nikolai Patrushev, a former head of the successor agency to the KGB, did not disclose details. The body usually focuses on matters of war and peace, and it is highly unusual for it to become involved in economic policymaking.

"The government and central bank have begun working seriously on stopping this bacchanalia on the currency market," Putin aide Andrei Belousov told Russian news agencies after Prime Minister Dmitry Medvedev convened an emergency meeting of top economic officials and the heads of major energy companies.

Putin's press secretary on Wednesday promised "a number of measures" in coming days to fight the crisis.

Russian leaders also have sounded somewhat more conciliatory toward Ukraine in recent days, perhaps in a bid to ease sanctions.

On another question, however, Putin was a moving target: whether he would run for president again when his term ends in 2018.

"I think it is too early to make any decisions about running for office or not," Putin said, noting that it would be better to wait until the public can react to "the results of our work."

"The head of state is always responsible for everything that has taken place in a state. I never tried to evade that responsibility," Putin said.

But then he forgave himself: "Speaking of the mistakes I have made - people always make mistakes."