Russia hinted on Wednesday it may station missiles in its region bordering Poland and Lithuania if the US does not cooperate over Russian President Vladimir Putin's suggestions for alternatives to a planned European missile shield.
At a meeting with US President George W. Bush this week, Putin proposed an expanded plan for missile defense cooperation that would involve Russia and NATO sharing data about missile launches from "rogue states."
Putin said his proposal would remove the need for the US to proceed with its plan to locate elements of a planned missile shield in Poland and the Czech Republic.
On Wednesday Russian First Deputy Prime Minister Sergei Ivanov appeared to suggest that if the US accepted the plan then Moscow would not place missiles in Kaliningrad Province.
But Ivanov warned that there would be consequences if the US didn't compromise on the issue.
"If our proposal is not accepted, we will take adequate measures. We are already taking them; an asymmetrical and effective response has been found," ITAR-Tass quoted Ivanov as saying. "We know what we are doing."
The Kremlin has said it would aim missiles at European countries if the US missile shield goes ahead.
Washington says the shield is needed as protection against possible missile attacks from states such as North Korea and Iran.