MOSCOW - Russian President Dmitry Medvedev added on Monday to the uncertainty surrounding Russia's 2012 presidential polls, saying he wanted a second term but would not stand against his powerful predecessor, Vladimir Putin.

With just nine months left before the March elections, neither Medvedev, 45, nor Putin, 58, has announced his candidacy amid warnings from businesses that the uncertainty was now hurting the investment climate in Russia.

In an interview with the Financial Times, Medvedev remained coy about his plans but also appeared to dismiss speculation that he and Putin will both stand.

"I will tell you one thing: I believe that any leader who holds the post of president simply must want to run," he said.

"Another issue is whether he will take this decision or not, this decision stands somewhat apart from his wishes," Medvedev said.

The interview appeared riddled with mixed messages. The Kremlin chief said Russia needs political competition yet expressed concern that running against Putin could hurt the country's development.

"The thing is that Vladimir Putin - both my colleague and old friend - and I still largely represent the same political force," Medvedev said, adding that competing with his fellow Saint Petersburger would be "hard to imagine".

"In this sense, competition between us could in fact harm those tasks and goals we have been pursuing for the past years. Therefore, probably this would not be the best scenario for our country and this concrete situation."

But he also said: "In the absence of political competition, the foundations of a market economy are beginning to disappear."

Last month, Medvedev held a solo news conference and, on Friday, gave a keynote address to the Saint Petersburg Economic Forum, where some of his supporters hoped for a clear statement of his intentions.

But on both occasions he only gave the tantalizing promise that the announcement will come "soon".

President between 2000 and 2008, Putin had to stand down after serving two consecutive terms in office.

Many observers believe the final decision on who will run in the March 2012 polls rests with Putin, whose political coalition will meet for a major convention in early September.

But Medvedev's caution over his future comes also with his statements that Russia is in need of radical change and, in particular, a historic process of decentralization.

"For many reasons people in our country have for centuries put their hopes in a good tsar, in the state, in Stalin, in leaders but not themselves.

"But we understand that any competitive economy means, first and foremost, hope in yourself, that you yourself are able to do something. This is a challenge that every man responds to," he said.

Agence France-Presse