HIGHLIGHTS-Russia's Medvedev on reform, economy, politics

MOSCOW, Sept 15 (Reuters) - Russian President Dmitry Medvedev made the following comments on Tuesday to academics and reporters from the Valdai discussion group.
>For a story on Medvedev's call for reform [ID:nLF63311]
>For a story on Medvedev's view on Iran [ID:nLF516344]
>For an analysis on Medvedev's rule [ID:nLE580035]
ON RUSSIAN REFORM, OLIGARCHS AND CORRUPTION:
"Our ultimate goal is development, which requires the modernisation of the economy, political and social systems. We have a half Soviet system. We must change our pension system, our health system.
"A huge number of businessmen do nothing. Their businesses don't do anything other than sell raw materials. We need to change the business model, the business mentality. Of course it is easier to sell raw materials but it is a road to nowhere.
"We must work with everyone, calmly and consistently to push through reform. We cannot hide and run.
"Corrupt officials run Russia. They have the true power in Russia.
"Corruption has a systemic nature, deep historic roots. We should squeeze it out. The battle isn't easy but it has to be fought. I don't think we can achieve tangible results in one year or two. If I am a realist we could get good results in 15."
ON THE FINANCIAL CRISIS:
"Russia is a huge country. It is not homogeneous. There are specific problems in specific regions, for example unemployment and one-industry cities where there is one factory supporting up to 50,000 jobs. We need to avoid people being laid off and if production does stop we need urgently to create new jobs.
"There are lots of scenarios, including a second wave, and our duty is to think about that as well."
ON IRAN: "Not only do we and the U.S. have worries (about Iran's nuclear programme), so do countries in the Middle East.
"Sanctions are not very effective on the whole but sometimes it is necessary to embark on sanctions and that can be the right thing."
ON G20 AND G8:
"The G20 will remain as a forum for discussion of economic issues. We can't return to the old format."
ON THE G20 SUMMIT IN PITTSBURGH:
"We need to move forward from general statements about the crisis to implementing specific actions. I think progress has slowed, for example on reforming the IMF. We proclaimed the idea of setting up a new financial architecture. Have we advanced? No we have not. I'm calling on the G20 to intensify its work."
ON PRESIDENT BARACK OBAMA AND U.S. RELATIONS:
"Recently we had the most detailed and extensive talks with President Obama. We spoke for 8 hours. It was a long discussion, we were ready to listen to each other. The communication was totally different to the previous administration. We used to speak for an hour and then we were running out of topics. President Obama talks himself, not his aides. It shows he is trying to be independent.
"We are ready to work with the United States as a partner."
ON RUSSIA'S 2012 PRESIDENTIAL ELECTION:
"I am not making any predictions. Some time ago I didn't want to run for president but that was my fate. I don't make forcasts for myself."
ON VLADIMIR PUTIN: "Our view points are close. It is very easy to discuss things with him. That is why we became a good team. We speak the same language."
ON VIOLENCE IN THE NORTH CAUCASUS:
"We need a powerful effort to normalise economic life. In Ingushetia 45 percent of people are unemployed." (Reporting by Janet McBride, editing by Guy Faulconbridge)