UPDATE 1-Russian oligarchs ask Medvedev for fair play

(Adds new details in paragraphs 12-14)

By Oleg Shchedrov

MOSCOW, April 8 (Reuters) - Russia's leading businessmen appealed to president-elect Dmitry Medvedev on Tuesday to respect their property rights and protect them from arbitrary state interference.

Medvedev summoned members of the Russian Union of Industrialists and Entrepreneurs (RSPP), dubbed by the media as a "billionaires' trade union", as part of his preparations for taking over from President Vladimir Putin on May 7.

Under Putin, the Russian state has consolidated control over key sectors of the economy and several leading business moguls have been jailed or fled the country. Businesses also complain they are hampered by official corruption.

"There should be clarity about the role of the state and private business in the economy," said RSPP head Alexander Shokhin.

"Direct participation by the state should be limited to sectors crucial for national security and those where investment is slow to return."

"Property rights should be guaranteed," Shokhin said. "Without this the development of business will be limited."

Medvedev told the business leaders he agreed with them in principle but did not make any firm policy commitments.