Medvedev Urges Modernization Of Russian Economy

LYNN BERRY

MOSCOW (AP) — President Dmitry Medvedev laid out his plan Thursday to move Russia's economy into the modern age and overcome the grim industrial legacy of the Soviet Union.

In his annual state-of-the-nation address, he took a few digs at Vladimir Putin, his predecessor and mentor, but made clear that the tightly controlled political system Putin created is here to stay.

Medvedev warned the opposition that any attempts to upset the current order will not be tolerated.

He ordered a sweeping modernization of the Soviet-built military arsenals. But he also called for a "pragmatic" foreign policy aimed at attracting investment and improving living standards, rather than "chaotic actions driven by nostalgia and prejudice."

"We mustn't puff out our chest," he said. "We are interested in the flow of capital, new technologies and modern ideas."

Putin's foreign policy was aimed at restoring Soviet-era global clout, and the often belligerent tone alarmed the West.

Putin, now prime minister, sat in the front row Thursday as Medvedev spoke to hundreds of parliament members, officials and religious leaders in an ornate Kremlin hall. As the president exceeded the 90 minutes allotted for the address, Putin was caught on camera staring at the ceiling.