Russia-US relations reset ‘impossible’: PM Medvedev

Russian Prime Minister Dmitry Medvedev told CNBC that a "reset" of relations with the United States is "impossible" and that ties between the two powers had been damaged by "destructive" and "stupid" sanctions imposed on the country in response for its role in the conflict in neighboring Ukraine.

In an exclusive interview that aired Wednesday, Medvedev said any suggestion of a "reset," as suggested by Russia's Foreign Minister Sergei Lavrov in September was out of the question.

"No, of course not. It's absolutely impossible. Let's be clear: we did not come up with these sanctions. Our international partners did," Medvedev said in Tuesday's interview.

Russian Prime Minister Dmitry Medvedev
A. Nikolskiy | Kremlin Press Center | Anadolu Agency | Getty Images
Russian Prime Minister Dmitry Medvedev

On other points, Medvedev said

— the world must move away from its dependence on the U.S. dollar.
Read MoreTime to reduce reliance on the dollar: Russia PM

— and Australian Prime Minister Tony Abbott should watch what he says about Russian President Vladimir Putin.
Read More Button up: Medvedev on Abbott's 'shirtfront'

Western countries have imposed wide-ranging sanctions on Russia since its annexation of the Crimean peninsula in March, targeting banks, oil producers and defense companies. In response, Russia has imposed retaliatory measures such as banning imports of European and U.S. fruit and vegetables.

Medvedev said the country would overcome the sanctions, and he believed they would be lifted in the near future. But they had "no doubt" damaged relations.

He said he understood former Soviet countries' concerns over Ukraine.

But he felt that the "foundations international relations" were being undermined by the punishing sanctions. The position was "destructive" and "stupid," he said.

Joining EU would be risky for Ukraine: Medvedev
Joining EU would be risky for Ukraine: Medvedev   

Russia threat?

Medvedev expressed dismay at President Barack Obama's speech before the UN General Assembly in which he labeled Russia a key threat, second only to the deadly Ebola virus and ahead of the terrorist threat posed by Islamic State.

Read MoreRussia sanctions: Who's losing out so far

"I don't want to dignify it with a response. It's sad, it's like some kind of mental aberration. We need to come back to a normal position, and only after that we can elaborate on how we are going to elaborate our positions in the future," he said.

He said the country hadn't closed its doors to anyone however.

Read MoreRussia a 'very profitable' bet: Finance minister

A recent pullback of Russian troops from the Ukraine border was not a signal to the U.S., he said, but an internal decision of the Russian federation.

"Real life is as follows: we are deeply concerned about the events in Ukraine. We would like the civil war unleashed by the coup earlier this year to end and Ukraine to return to calm and stability," the Russian prime minister said.

Read MoreUkraine: What next for battered economy?

He stressed that Ukraine could make "any choice," whether it wants to join the EU an another political union.

"Our current goal is to help restore peace in Ukraine," he said, adding that that could only be achieved by negotiations by central and eastern Ukraine.

Russia has been heavily criticized for its perceived military support of separatist rebels in eastern Ukraine. It denies such charges.

The crisis came to a head when what are believed to be Russian-supplied rebels shot down Malaysia Airlines Flight MH17 in July, killing all 298 people on the plane.