"The image of our country as being a practical, sensible investment - exemplified by many projects with Russian participation, including the landmark project 'Nord Stream,' - is hindered because of perceived public wariness from particular states," said Medvedev, speaking at a meeting of representatives Rossotrudnichestvo abroad.

He was referring to the views of experts who believe Russia is a country with, not-yet-realized investment potential.

"The amount of foreign investment doesn't align with this potential is not and this under-investment is due to image and reputational losses that we have had. These problems do not need to be simplified. They exist, and we must admit that we are partly at the root of the problem, " said Medvedev.

The Prime Minister said that countries "with strong brands and 'soft power'" attract more foreign direct investment and technology.

"Based on the analysis of the period from 2005 to 2010, Russia is only in tenth place on the 'soft power' index. As for our military force, we understand that we aren't in tenth place, and this is a serious imbalance," Medvedev said.

He noted that in the first three on the index of "soft power" are the U.S., France, and Germany