MOSCOW — Russian President Vladimir Putin warned the West on Thursday that Moscow would consider using "all weapons" in its arsenal, including nuclear arms, if its Baltic exclave of Kaliningrad comes under attack, sharpening tensions with NATO after a series of military exercises in the region.

Speaking at the annual meeting of the Valdai Discussion Club in Moscow, Putin also offered a rare acknowledgment that Ukrainian drone strikes on Russian oil refineries have taken a measurable toll on the country's economy, estimating the damage at about 1% of gross domestic product.

Warning over Kaliningrad

Putin said Russia had no plans to attack any European country but was prepared to respond to Western aggression. He pointed to Kaliningrad, the Russian territory on the Baltic Sea sandwiched between NATO members Poland and Lithuania and cut off from the rest of Russia.

"If it comes to direct attack against the Russian Federation, in this case on Kaliningrad and possibly some other territories, of course the issue of using all weapons in our country's arsenal will inevitably and unavoidably emerge on the agenda. This is unavoidable," Putin said.

His remarks follow recent NATO military drills near Kaliningrad, which the alliance has described as defensive exercises meant to strengthen deterrence. Moscow has reacted sharply to the exercises and warned in late September that it would retaliate if NATO attempted to blockade the exclave by air or sea.

"The drills in the Baltic Sea, following one another ... Then the attempts to arrest our ships and........

© International Business Times