Medvedev says crisis will not harm Russian army modernisation

PETROPAVLOVSK-KAMCHATSKY, Russia (Reuters) - President Dmitry Medvedev said on Thursday Russia's plans to modernise its armed forces will not be affected by financial crisis. "Regardless of any crisis we should build new submarines, should simply deal with the modernisation of the armed forces," Medvedev told the crew of St George the Victor nuclear submarine during a visit to its Pacific home base at Kamchatka Peninsula.

"Our country has means and resources for that," he said in comments showed on national television.

Medvedev's predecessor Vladimir Putin made the revival of the armed forces, neglected in the first post-Soviet decade, a symbol of Russia's resurgence and an additional argument in Moscow's assertive foreign policy.

Medvedev, who took office in May, faces a financial crisis and a confrontation with the West over Russia's invasion of Georgia in August.

The crisis has threatened the gains of an unprecedented economic boom overseen by Putin, now prime minister.

Medvedev has said the war in Georgia showed Russia needed to equip its army with more up to date weapons. Putin has said the military budget will grow by 28 percent next year.

As opposed to Putin, who has flown a supersonic jet, made a short underwater trip on a nuclear submarine and appeared publicly in military uniform, Medvedev has previously stuck to a more civilian style during his visits to military installations.

On Thursday the 43-year-old former corporate lawyer known as a keen Internet user and a yoga fan appeared at the Vilyuchinsk navy base in a navy uniform.

Medvedev, accompanied by Defence Minister Anatoly Serdyukov and top brass, toured the submarine built in 1978 and armed with intercontinental missiles capable of carrying nuclear warheads and joined the crew for a tea party.

He told the sailors the government was committed to providing them with better social conditions, including housing.

"We are talking about tens of billions of roubles (billions of dollars)," Medvedev told the sailors. "I think we will finally solve the problem of proper housing for the military."

Medvedev said neither Western pressure, nor economic woes could affect Russia's commitment to have strong armed forces.

"As far as other global problems are concerned, we have a sustainable economy," he said. "We have enough material and intellectual resources no to depend on anyone."

(Writing by Oleg Shchedrov; editing by Philippa Fletcher)