Russian President Dmitry Medvedev said Russia and Ukraine should create maximally favorable conditions for mutual investment, according to RIA Novosti.

Speaking to Ukrainian media shortly before his two-day visit to Kiev kicking off Monday, Medvedev said that under the previous Ukrainian administration, "many contacts were frozen," and that Moscow was even discontent with the way its neighbor treated Russian investments.

"Unfortunately it was connected with the intra-political squabbles you were going through at the time. Now [we] need to overcome the situation and try to create a maximally favorable investment climate," the Russian president said.

In his first three months in office, President Viktor Yanukovych has made good on his campaign pledge to conduct a more friendly policy toward Russia than his predecessor, working swiftly to end the bitter disputes that arose under the Western-leaning Viktor Yushchenko.

Medvedev added that he does not believe "direct management of investment" "by the state and government" is always productive, "especially when we speak of private investors."

"The task of the state is to protect these investments... Business contacts should be established by representatives of the business elite," he said.