Russian President Vladimir Putin has named Federal Tax Service chief Mikhail Mishustin as Russia's new prime minister, the Kremlin said Wednesday.

"Vladimir Putin held a working meeting with the head of the Federal Tax Service, Mikhail Mishustin, during which he invited him to take the post of prime minister," it said in a statement.

"With the consent, he submitted the candidacy of M. Mishustin for consideration by the State Duma," it added.

Earlier, Russian Prime Minister Dmitry Medvedev announced the resignation of his government.

The decision was announced after Putin addressed the Federal Assembly.