Russian President Dmitry Medvedev says improvement of the social and economic situation in the newly established North Caucasus Federal District is the key to the solution of the problems in the region.

The Russian president announced the establishment of the North Caucasus district on January 19 and named Krasnoyarsk governor and former business executive Alexander Khloponin as deputy prime minister and presidential envoy to the volatile North Caucasus. Analysts describe Khloponin as a "crisis manager" for the region.

Medvedev said "the key to the solution of the problems in the district is not in piling on pressure and replicating talks that the region is the root to the main problems of crime and terrorism, which unfortunately is true, but it is not the main point."

"The key is namely in the social and economic development and in the person who is able to handle this task," he said, adding that Khloponin will get all the necessary assistance in the district he needs.

Khloponin has headed the Krasnoyarsk Territory, a vast Siberian province, nearly four times the size of France, since 2002. His gubernatorial term was marked with a fast economic growth in the region and a visible improvement in living standards.

On Saturday, Russian Prime Minister Vladimir Putin ordered Khloponin to develop a complex strategy to increase social and economic stability in the region. He said special economic zones and industrial parks should be established in the North Caucasus to attract investment to the region.

SOCHI, January 26 (RIA Novosti)