Russian President Vladimir Putin has announced a modernization drive for the country's armed forces - with a goal of at least 70 percent modern armament by 2020.
Under the plan, over 40 intercontinental ballistic missiles, four missile regiments for combat duty, and a strategic nuclear submarine will come into service this year.
During a meeting with his Finnish counterpart after the announcement, Putin underlined that Russia will respond to any threat posed to its territory.
"If someone puts our territories under threat then we will have to aim our armed forces and modern striking facilities at the territories where the threat comes from, accordingly."
This plan is said to strengthen Russia's defense capability as NATO's military build-up near the country's borders is accelerating.
In response, NATO Secretary-General Jens Stoltenberg claims the move will destabilize regional peace.
"And this nuclear sabre-rattling of Russia is unjustified, it's destabilizing and it's dangerous. And this is something which we are addressing and it's also one of the reasons why we now are increasing the readiness and the preparedness of our forces."
Over 5,000 troops from 17 NATO and partner countries are participating in Baltic Operations maneuvers being held throughout the Baltic Sea.
Meanwhile, U.S. Secretary of State John Kerry has expressed his concern over Putin's reminder of the nation's nuclear capabilities.
Kerry warns nobody wants to see US-Russia relations go back to "cold war status".
