Ties between NATO and Russia were marked by "schizophrenia", Paet said on Estonian television, adding that Moscow had labelled the alliance "an enemy".

"When military vessels built by NATO member states and sold to Russia appear on the world's seas in a few years, and the security situation gets more complex as a result, then France as a NATO member will also need to deal with the question of how to repair the broken security balance," he said.

France would be the first NATO member to sell advanced military technology to Russia if it seals a deal for the Mistral-class assault ship.

It says it has agreed in principle to sell one and is mulling a request for three more. It argues that Russia must be treated as a partner and not a threat to European security.

Critics, however, point to Moscow's 2008 war with pro-Western, ex-Soviet Georgia, plus recent Baltic exercises.

Estonia, Latvia and Lithuania, on the European Union's Baltic rim, are jittery.

They broke from the crumbling Soviet Union in 1991 and have had rocky ties with Russia, notably after joining NATO and the European Union in 2004.

With a total population of 6.8 million, they are wary of Russia's growing assertiveness and suggest some western European allies fail to take their concerns seriously. Washington is also unhappy with the proposed sale.

Commenting on ties between NATO and Russia, Paet said: "We have friendly talk from the NATO side, insisting Russia is a partner not an enemy, and on the other side we have Russia increasing military exercises near NATO borders and labelling NATO an enemy, not a friend."

Paet said deals between other NATO allies and Russia were looming but he did not elaborate.

An Estonian government official singled out The Netherlands and Spain.

"When we ask them why they're doing this, we're told that economic calculations and a chance to create jobs outweigh security concerns," the official told AFP.

NATO spokesman James Appathurai said Wednesday that the alliance's chief, Anders Fogh Rasmussen, did not object to the warship plan but had noted allies' concerns.

"The secretary general does not consider Russia a threat and he hopes that Russia does not consider NATO a threat," Appathurai said.

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