NATO and Ukraine will hold emergency talks on Tuesday after Vladimir Putin said Russia will ramp up the production of a new, hypersonic ballistic missile.
Ukraine's parliament cancelled a session as security was tightened following a Russian strike on Thursday on a military facility in Dnipro, a central city with a population of around one million. No fatalities were reported.
In a nationally-televised speech, Mr Putin said the attack - carried out with an intermediate-range Oreshnik missile - was in retaliation for Ukraine's use of US and British missiles capable of striking deeper into Russian territory.
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"No one in the world has such weapons," the Russian president said. "Sooner or later other leading countries will also get them. We are aware that they are under development."
He added: "We have this system now. And this is important."
Detailing the missile's alleged capabilities, Mr Putin claimed it is so powerful that using several fitted with conventional warheads in one attack could be as devastating as a strike with nuclear weapons.
General Sergei Karakayev, head of Russia's strategic missile forces, said the Oreshnik could reach targets across Europe and be fitted with either nuclear or conventional warheads - while Mr Putin alleged Western air defence systems will not be able to stop the missiles.
Mr Putin said of the Oreshnik: "There is no countermeasure to such a missile, no means of intercepting it, in the world today. And I will emphasise once again that we will continue testing this newest system. It is necessary to establish serial production."
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Testing the Oreshnik will happen "in combat, depending on the situation and the character of security threats created for Russia", the president added, stating there is "a stockpile of such systems ready for use".
EU leaders condemn Russia's 'heinous attacks'
Numerous EU leaders have addressed Russia's escalation of the conflict with Poland's Prime Minister Donald Tusk saying the war is "entering a decisive phase [and] taking on very dramatic dimensions".
Speaking in Kyiv, Czech foreign minister Jan Lipavsky called Moscow's strike an "escalatory step and an attempt of the Russian dictator to scare the population of Ukraine and to scare the population of Europe".
At a news conference, Mr Lipavsky gave his full support for delivering the additional air defence systems needed to protect Ukrainian civilians from the "heinous attacks".
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