Russian President Dmitry Medvedev on Thursday urged the government to lower customs duties on imported microchips in a bid to spur the national economy's modernization.

Medvedev, who is on a visit to Russia's West Siberian city of Tomsk, said high customs duties were hampering the development of domestic equipment producers.

During the inspection of an exhibition of hi-tech products in Tomsk, Sergei Chirikov, president of EleSy company offering automation solutions for technological processes in industry, told the president about high customs duties on microchips.

Medvedev addressed the issue to Economics Minister Elvira Nabiullina accompanying him on his trip who said that Russia had started to produce its own microchips.

Chirikov, however, said that an adequate range of microchips was not yet being produced in Russia.

Medvedev, who portrays himself as a young and innovative leader, said the country must concentrate on creating products that are in demand on the world market, rather than just extract them.

TOMSK, February 11 (RIA Novosti)