Russia had condemned the anti-missile radar facility being placed in the Czech Republic and missile interceptors in Poland under plans drawn up by Obama's predecessor George W. Bush, threatening to deploy short-range missiles in NATO's backyard.

Russia has now decided to freeze its move to put Iskander short range missiles in its Kaliningrad territory between Poland and Lithuania.

"The last decision by US President Barack Obama, which cancelled the plans to build missile defence facilities in Eastern Europe, brings us good thoughts," Putin said in televised remarks.

"And I hope very much that this correct and brave decision will be followed by others," he added.

Obama announced Thursday that he had decided to replace the shield with a more mobile system using mainly sea-based interceptors to target any attack with short and medium-range missiles, with Iran seen as the main threat.

Putin said Obama's shift should be followed by other US measures to lift Soviet-era restrictions on the export of high technology to Russia and to help its WTO membership bid.

Ties between Moscow and the West have been slowly recovering since Obama took over at the White House, promising a "reset" in their relations.

Russian President Dmitry Medvedev, however, added that Russia would reject any "crude" compromise deal with the United States on missile deployments in response to the dropping of the planned defence shield.

"If our partners hear some of our worries, we will be equally attentive to theirs," Medvedev said in an interview with Swiss media ahead of a state visit next week, the agencies reported.

"That means no compromises or primitive deals... We are grown up enough not to link one decision to another," he said when questioned on any potential concessions in return for the shield plan being dropped.

In a sign of a growing thaw, NATO's new secretary general, Anders Fogh Rasmussen, said the alliance would address Medvedev's ideas on a new Euro-Atlantic security arrangement.

"I believe that a NATO-Russia dialogue could provide real added value. We must all aim for a Euro-Atlantic security architecture in which Russia sees herself reflected," Rasmussen said in a keynote speech in Brussels.

The former Danish prime minister said it was in the interests of the alliance and Moscow to work together, and said the US, NATO and Russia should consider linking missile defence systems.

Studying how to tackle the proliferation of ballistic missile technology is in "NATO's and Russia's fundamental strategic interest," he said.

"We should explore the potential for linking the US, NATO and Russia missile defence systems at an appropriate time," he added.

Rasmussen said it was time for a joint review with Russia of the security challenges of the 21st century.

"I would like to see NATO and Russia agree to carry out a joint review of the new 21st century security challenges to serve as a firm basis for our future cooperation," he said.

Moscow's envoy to NATO Dmitry Rogozin called the address "very positive and very constructive", but added that it needed careful scrutiny.

As Polish and Czech leaders insisted that ties with the United States would remain strong after the announcement, other European heads of state hoped it would lead to a warming of ties between Russia and the West.

Speaking late Thursday at an EU summit, German Chancellor Angela Merkel called it "a sign of hope to get over difficulties with Russia". French President Nicolas Sarkozy described it as "an excellent decision from every point of view."

Czech and Polish dailies attacked the US decision however, accusing Obama of "treachery" and selling out to Moscow. "Obama bows to Kremlin, no radar on Czech soil," read a headline in the right-leaning Czech daily Lidove Noviny.

earlier related report
US seeks to reassure Czechs after missile defense move
Defense Secretary Robert Gates on Friday invited the Czech Republic to join a new missile defense system for Europe and promised to bolster US security ties with Prague.

Seeking to reassure the Czechs a day after President Barack Obama announced plans to scrap a missile defense shield based in Central Europe, Gates said he hoped Prague would play a role in the new system that will initially use sea-based interceptors.

"We talked about opportunities for future cooperation, and said that we would welcome Czech participation in the new architecture," Gates told reporters after meeting his Czech counterpart, Martin Bartak, at the Pentagon.

The pair agreed there would be a "high level" meeting soon of defense officials that would focus on "opportunities for enhancing the security relationship between the Czech Republic and the United States," said Gates.

"Missile defense doesn't end here," Bartak said, adding that his country would look to see how it could help with the new system, which would introduce land-based SM-3 interceptors by 2015.

"The Czech Republic is definitely interested in being part of missile defense in the future as well," he said, standing next to Gates.

But it was "too early to talk about hosting interceptors," Bartak added.

Gates said the administration did not discuss the new missile defense system with Russia, which had strongly objected to former president George W. Bush's plan that would have installed a radar in the Czech Republic and 10 interceptors in Poland.

After the decision, Polish and Czech leaders insisted that ties with the United States would remain strong, but newspapers in both countries Friday attacked Obama's move, accusing him of "treachery" and selling out to Moscow.

Czech Foreign Minister Jan Kohout called for the United States to "fill the empty space" left by the scrapped missile plan "with concrete projects."

After his talks with the US defense chief, Bartak said that the main purpose of the meeting -- planned before the missile defense decision -- was to promote more military cooperation and joint research projects.

He said he hoped to see "tangible results soon" in expanding military ties between the two countries.

The new missile defense system is designed to counter Iran's short- and medium-range missiles, while Bush's plan focused on the potential threat of intercontinental ballistic missiles that Tehran has yet to obtain.

When asked how Washington would respond if US intelligence on Iran's missile programs changed, Gates said the new system -- employing a network of sensors -- was more flexible and could be adjusted as needed.

"I'm probably more familiar with the risks of over-reliance on intelligence than anybody," said Gates, a former CIA director who worked for the spy agency for years.

"If the intelligence is wrong, and I was in that business long enough to know that that happens, we are actually better able to deal with a changed situation in which the intelligence assessments are wrong with the new architecture than we were with the old one."

Iran had built up an arsenal of hundreds of shorter-range missiles that could possibly "overwhelm" the Bush-era system, which was designed to counter a salvo of only five missiles, Gates said.

The new program, he added, "provides significantly more protection."

earlier related report
Czech, Polish press slam US axing of missile shield
Czech and Polish dailies Friday attacked US President Barack Obama's decision to scrap plans to build a missile shield in Central Europe, accusing him of "treachery" and selling out to Moscow.

"Obama bows to Kremlin, no radar on Czech soil," read a headline in the right-leaning Czech daily Lidove Noviny.

The centrist daily DNES ran a headline saying "No radar. Russia wins," as well as commentaries under headlines such as "Russia and Iran win in the missile-shield game" and "Will the Czechs belong to Moscow again?"

In a commentary, DNES said that "the Russians now can see that their intimidating rhetoric of the strong guy bears fruits. And that's the most disturbing thing."

The business daily Hospodarske Noviny ran a commentary titled, "Joy for Kremlin, worries for Czechs."

"The United States will not build the radar in the Czech Republic, and our country has lost the fundamental anchor of its foreign policy built on a strong alliance with the States," a Hospodarske pundit wrote.

"We had a unique opportunity to wring out of the Russian sphere of influence, and now we have lost it. It is appropriate to say that an ally we relied on has betrayed us and swapped us for better relations with Russia, a country we are rightly afraid of."

On Thursday, Obama called Czech Prime Minister Jan Fischer to tell him the United States would not build a radar base in the Czech Republic or missile interceptors in Poland -- a project that had angered Russia which saw it as a security threat.

"Prime Minister Fischer should have his phone ready by his bed. After Obama, it is (Russian President Dmitry) Medvedev or (Prime Minister Vladimir) Putin that may call soon," Hospodarske Noviny added.

In Warsaw the press particularly attacked the date chosen for Obama's announcement, the 70th anniversary of the unsuccessful Russian Bolshevik invasion of newly-independent Poland.

As the mass circulation Fakt spoke of a stab in the back, and the tabloid Superexpress yelled "Treason", papers warned of a cooling in US-Polish relations.

"Even if Barack Obama offers us a consolation prize, the way in which the Americans gave up the missile shield, and the date chosen to announce it, are disgusting," the right-wing daily Rzeczpospolita said.

Another conservative daily, Dziennik, said the timing of Obama's announcement was "evidence of ill-will ... in abandoning a defensive project that was important to us.

"Relations between Warsaw and Washington will have to change. The year 2009 has ended a close alliance which has lasted nine years," centre-left Gazeta Wyborcza commented.

Despite the decision's impact on their security, Czech and Polish leaders have for their part insisted that ties with the United States and Obama would remain strong.

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