Russian President Dmitry Medvedev said yesterday that upgrading Russia's nuclear forces was the top priority in an ambitious military modernization plan that he pledged to pursue despite the nation's financial problems.

Russia must upgrade its arsenals and combat readiness to fend off threats posed by NATO's expansion, international terrorism and local conflicts, Medvedev said at a meeting with the military's top brass.

"All that requires a modernization of our armed forces," Medvedev said. "We now have all the necessary conditions for that despite the current financial difficulties."