MOSCOW, July 2 (AFP): Russia is ready to build effective relations with the United States in response to US President Barack Obama's willingness to improve ties, President Dmitry Medvedev said.

"The new administration headed by President Obama is showing its willingness to change the situation and build more effective, reliable, and ultimately more modern relations," Medvedev said.

"We are ready to play our part," he added, speaking in a video address posted on the Kremlin website.

Obama arrives in Moscow Monday in a bid to "reset" US-Russian relations which were badly strained under the administration of his predecessor, George W Bush, amid a range of disputes.

The US president is to hold talks with Medvedev on topics including nuclear disarmament and a bitter disagreement over US plans to place missile defence facilities in eastern Europe, which Russia opposes.

The two leaders are also expected to discuss Iran and Afghanistan, and media reports have said that Russia could agree to boost the transit across its territory of US supplies bound for the war in Afghanistan.

Medvedev said a "crisis in confidence" had arisen in US-Russian ties, but noted there were many potential areas of cooperation between the two countries.