Exclusive Russian President interview

Energy has pulled Russia out the economic doldrums.

It's now has one the fastest growing economies in the world.

But in a exclusive interview with Reuters Russia's President Dmitry Medvedev is urging caution.

He says he wants to reduce the state's role in the economy and curb government spending to combat inflation.

Prices are currently rising by 14 per cent - twice the government's target.

SOUNDBITE (Russian) MEDVEDEV SAYING:

" If we want to talk about economic threats, it's the threat of international financial instability, the crisis in production and all the related problems. If we're talking about other factors, they are also obvious, terrorism, rise in international crime - all are problems the Russian Federation has because we're an open society."

Medvedev admits Russia's new riches have also failed to solve two main problems.

SOUNDBITE (Russian) MEDVEDEV SAYING:

"Firstly, poverty which we haven't yet defeated. Resolving this problem is the main task for the government. We are going to work hard at this, using all of our economic might. And the second problem I must mention is corruption, corruption as a systemic challenge, as a threat to national security, as a problem which leads to a lack of faith among citizens in the ability of government to bring order and protect them."

Medvedev admits Russia has "practical problems" dealing with the E.U.

He also rejects claims by Russian analysts that the Kremlin has been shutting out alternative voices in television and the wider media.

SOUNDBITE (Russian) MEDVEDEV SAYING:

" Thank God we live in a free society where one can watch other channels, foreign channels, private channels, one can open a newspaper or go into the internet and download whatever you like. In this sense, the problem of restrictions on information doesn't exist in Russia today, didn't exist in the past and won't happen in the future I can assure you of that."

Neither - he added - will democracy be compromised.

SOUNDBITE (Russian) MEDVEDEV SAYING :

"The defining values are freedom, democracy and the protection of private property. And these are the values we will bring to our relations with our international partners. In this sense our foreign policy cannot be characterised as liberal or conservative or anything else. It must be a policy

that supports and furthers our national interests - that is its essence."

Medvedev took over from Vladimir Putin just seven weeks ago.

Putin is now the Prime Minister and many are wondering how much of his own man Medvedev will be when it comes to solving Russia's problems.

Sonia Legg, Reuters.

doldrums Noun the doldrums

1.a. A period of stagnation or slump.

b. A period of depression or unhappy listlessness.

2.a. A region of the ocean near the equator, characterized by calms, light winds, or squalls.

b. The weather conditions characteristic of these regions of the ocean.