Russian commanders have been concerned by spending cuts, part of Moscow's attempts to rein in its budget deficit that is expected to reach at least 8 percent of gross domestic product in 2009.

"The most important thing is that the credibility of the army is kept at the highest level ... Now, it's not easy, especially during the economic crisis," Medvedev said at a meeting with military leaders in eastern Siberia.

Medvedev said the main task was to maintain funding for new weapons programmes and equipment. "This must fund a new image for the armed forces," he said.

Medvedev emphasised the strategic significance of Russia's Pacific coastline during the fight with Britain for control over Central Asia, during his stopover in Chita, close to the Chinese border and around 6,000 km (3,750 miles) from Moscow.

Joint exercises with the other six former Soviet republics of the Collective Security Treaty Organisation (CSTO) and the Shanghai Cooperation Organisation (SCO), which groups Russia with most Central Asian states and China, would also take place in the near future, said Medvedev.

According to Defence Ministry plans, military personnel would be cut from 1.13 million to 1 million and officer numbers more than halved to 150,000 to try to transform Soviet-era structures of the armed forces.

Prime Minister Vladimir Putin has said Russia plans to spend more than 4 trillion roubles ($111.4 billion) in 2009-11 to purchase new weapons, and the bulk of the sum will be spent on modernising the armed forces.