The Russian economy has been hampered by international sanctions in recent years -- much to do with the Russian president's foreign policy -- but they still came out in huge numbers to support him. Our reporter in Moscow, Tang Bo, looks at the challenges facing Putin in his fourth term.

A historical turning point mingled with challenges. This is how Vladimir Putin described Russia at his annual State of the Union address, warning of the risk that Russia would fall behind. He said the country's top priority is to improve people's welfare.

VLADIMIR PUTIN RUSSIAN PRESIDENT "We need to renew our employment system. We need to create modern, high-paying jobs and sustainable long-term growth of incomes."

Putin said that Russia should aim to be in the world's top five economies and to increase its GDP per capita by 1.5 percent in the next ten years. But that is not an easy task. Russia is still under international sanctions for its absorption of Crimea and its military operations in eastern Ukraine in 2014. The sanctions have hurt Russia's economy although it emerged from a recession last year. Experts say Russia might have lost some friends but it is also making new ones.

IRINA BOLGOVA, ASSOCIATE PROFESSOR MGIMO UNIVERSITY "We are looking at China. With hope and some strategic cooperation, not only with China but also the Asia Pacific in general, there are a lot of countries that are highly developed, and that is potentially useful for Russia in terms of investment, finances, resources and technologies."

Chinese President Xi Jinping's state visit to Russia last year concluded with over 10 billion US dollars in agreements. Russia's participation to BRICS and G20 summit has also brought the country more constructive partnerships and dialogues.

IRINA BOLGOVA, ASSOCIATE PROFESSOR MGIMO UNIVERSITY "The European and American sanctions are only one aspect of economic development. We have been under sanctions for almost 4 years. The economy has somehow recovered, as we managed to find some other revenue sources."

Experts say, during his new presidential term, Putin faces challenges of integrating Russia into the international community and at the same time ensuring a smooth cooperation with the West on an equal basis. Tang Bo, CGTN, Moscow.