Russian President Vladimir Putin addresses a news conference in the historic Hofburg palace in Vienna on May 23. Putin yesterday accused the United States and Europe of upsetting the strategic political and military balance in the world by creating an anti-missile defence system on the continent. - REUTERS

MOSCOW (AP):

Russian President Vladimir Putin warned that Moscow would take "retalia-tory steps" if Washington proceeds with building a missile-defence system for Europe, in an interview released today.

In an interview published by Italy's Corriere della Sera yesterday, Putin also suggested that Russia could respond to the threat by aiming its nuclear weapons at Europe.

Asked whether the planned U.S. missile-defence shield in Eastern Europe would compel Moscow to target its own missiles on U.S. military sites and other locations in Europe, Putin replied, "Naturally, yes."

"If the American nuclear potential grows in European territory, we have to give ourselves new targets in Europe," he was quoted as saying. "It is up to our military to define these targets, in addition to defining the choice between ballistic and cruise missiles. But this is just a technical aspect."

Speaking to foreign reporters days before he heads to Germany for the annual summit with United States President George Bush and the other Group of Eight leaders, Putin assailed the White House plan to place a radar system in the Czech Republic and interceptor missiles in neighbouring Poland. Washington says the system is needed to counter a potential threat from Iran.

Russia targeted

Putin said neither Iran nor another pariah state, North Korea, has the rockets that the system is intended to shoot down, suggesting the system would be used instead against Russia.

"We are being told the anti-missile defence system is targeted against something that does not exist. Doesn't it seem funny to you, to say the least?" an irritated Putin said.

He added that the planned missile shield would cover Russia's territory up to the Ural Mountains.

"It would be funny if it wasn't so sad," he said.

Putin lamented that the planned system would be "an integral part of the U.S. nuclear arsenal" in Europe - an unprecedented step. "It simply changes the entire configuration of international security."

He said he hoped that U.S. officials would change their minds regarding the missile plan, warning that Moscow was preparing a tit-for-tat response.

"If this doesn't happen, then we disclaim responsibility for our retaliatory steps, because it is not we who are the initiators of the new arms race, which is undoubtedly brewing in Europe," Putin said.

"The strategic balance in the world is being upset and in order to restore this balance without creating an anti-missile defence on our territory, we will be creating a system of countering that anti-missile system, which is what we are doing now," Putin said.