Russian President Vladimir Putin is due to address both chambers of the country's legislative body, the Federation Council and the State Duma.

This year his annual event comes amid tough times for the Russian economy partially caused by Western sanctions and also after a surprising decision to end the South Stream project.

Russian Finance Minister Anton Siluanov was earlier quoted by local media outlets as saying damages Moscow suffers from the EU and US measures against are expected to be at USD 140 B in 2014 alone.

However, domestic issues such as moves to reverse the downward demographic trend will also be on the agenda. Putin earlier told ITAR-TASS the idea of "maternity capital", which would provide financial stimuli for families choosing to have more than a single child. The speech is also to touch all main policy lines of Russia over the past year and the perspectives ahead.

Putin's eleventh annoual address in the Kremlin's Georgievska (St George) hall at 12:00 MSK (09:00 GMT) will be aired live on Pervy Kanal, Russia 1 and Russia 24 TV stations.

Members of the Russian government and the country's constitutional and supreme courts, as well as religious leaders and chief editors of most popular media outlets are also due to attend.

"Putin is preparing the message on his own," Russian daily Rossiyskaya Gazeta wrote on Wednesday, adding he had "concentrated" on the document upon returning from this week's visit to Ankara.