Russian President Dmitri Medvedev has called for drastic reform of the economy in his annual state of the nation address.

He also proposed a number of political reforms aimed at strengthening democratic institutions and giving opposition parties greater access to power, especially in regional elections.
 

President Medvedev said Russia had to diversify its economy and move away from being dependent on the export of raw materials towards producing goods and technologies, saying "we will build a new economy instead of a primitive resource-oriented economy".
 

The Russian leader, who became president last year, told lawmakers and officials, "our country again requires modernisation in all areas and this will be the first time in our history when modernisation will be based on the values and institutions of democracy". He added "Russia needs to become a society of smart, free and responsible people".
 

Mr Medvedev also said Russia should consider reducing the number of its time zones to stimulate the economy and strengthen ties between Moscow and the eastern Pacific region. At present Russia has 11 time zones, which means that the business day is closing in Vladivostok as it opens in Moscow.