According to Russian news agencies, Putin thanked Medvedev for his service but noted that the prime minister's Cabinet failed to fulfill all the objectives set for it. Medvedev submitted his resignation hours after Putin discussed the constitutional amendments during his state of the nation address.
It is also being said that Putin plans to name Medvedev as deputy of the presidential Security Council. Medvedev, a longtime close associate of Putin's, has served as Russia's prime minister since 2012. He spent four years before that as president in 2008-2012.
Putin asked the member's of Medvedev's Cabinet to keep working until a new Cabinet is formed.
Medvedev's resignation followed Putin's annual state of the nation address earlier in the day. During his speech, the Russian leader proposed amending the constitution to increase the powers of prime ministers and Cabinet members.
The proposed move is seen as part of Putin's efforts to carve out a new position of power for himself to stay at the helm after his current term as president ends in 2024.
While speaking in a televised speech before senior officials, Putin had suggested amending Russia’s constitution to limit a future president to two terms in office. It is worth noting that Putin himself has served as the President of Russia for four consecutive terms.
The ruble fell as much as 0.6 per cent against the dollar on the news, before paring its loss to 0.3 per cent at 61.62 per dollar at 4:54 pm in Moscow, a Bloomgerg report said.
(With inputs from agencies)