Putin says Turkey will regret actions against Russia

Russian President Vladimir Putin has said that Turkey will "regret" any diplomatic escalations against his country, following the downing of a Russian fighter jet last week over Syria.

Speaking in an annual address to the nation, Putin said that Turkey would face further pressure as the two countries implemented tit-for-tat policies against one another.

"Turkey will not just suffer from limitations on tomatoes, construction companies. Turkey will regret many times what's been done," said Putin.

The speech comes after accusations from Putin and the Russian government the Turkish President Recep Tayyip Erdogan's government had traded smuggled oil with the Islamic State group.

The foreign ministers of both countries, Sergei Lavrov and Mevlut Cavusoglu however met in Belgrade on Thursday in the first high-level bilateral talks since the attack on the Russian plane.

"The meeting between the two foreign ministers lasted for 40 minutes," a Turkish foreign ministry official told the AFP news agency.

The meeting came on the sidelines of the ministerial council of the Organisation for Security and Cooperation in Europe.

On Wednesday Russian military officials laid out what they called "hard evidence" that the Turkish government and members of Erdogan's family had been involved in illegal smuggling with the group.

"We presented evidence how the illegal oil trade is carried out to finance the terrorist groups," Russian Deputy Defense Minister Anatoly Antonov said, as reported by state-run Sputnik news.

"We know how much Erdogan's words are worth."

Antonov presented photographs and videos purportedly showing routes from IS-controlled oil fields in Syria ending in Turkey, claimed to be worth $3mn of oil per day.

One route ended in Turkish ports on the Mediterranean Sea, one ended in a refinery in Batman and a third in the southeast town of Cizre.

Erdogan slammed the claims as "slander" and in turn accused Russia of involvement with the IS oil trade, alleging that Turkey had evidence of that.

"We have the proof in our hands. We will reveal it to the world," the Turkish leader said in a televised speech in Ankara.

"No one has the right to slander Turkey, especially the slander of Turkey buying IS oil. The immoral side of this issue is involving my family in the affair," he continued.

"Turkey has not lost its moral values to buy oil from a terror organization."

Erdogan had previously stated that if Russia's claims could be proved, that he would resign as president.

Turkish Prime Minister Ahmet Davutoglu lashed out Thursday at Russian claims that Turkey has been allegedly purchasing oil from IS, calling them "Soviet lies".

"There was a Soviet propaganda machine during the Cold War which produced several lies that they believed first then expected the world to do so," he said Thursday in a press conference in Ankara.

"They were called Pravda lies," he said, referring to the daily newspaper that was the mouthpiece of the Communist Party.

"Russia's Sovietic stance, which we thought it had forgotten, is coming back bit by bit."