Russian President Vladimir Putin warns that Russia would aim missiles at Europe if the United States pursued its plan for a missile defense shield near Russia's borders. [Photo: AFP]

Russian President Vladimir Putin has warned that Moscow would take "retaliatory measures" if Washington proceeds to build a planned missile defence system for Europe.

Speaking days before he heads to Germany for the annual summit with US President George Bush and other Group of Eight leaders, Putin criticized the White House plan to place a radar in the Czech Republic and interceptor missiles in neighbouring Poland.

Washington says the system is needed to counter a potential threat from Iran and North Korea.

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

"We are told that the anti-missile defence system is designed for defending something which does not exist..."

Putin said that the planned system would be an integral part of the US nuclear arsenal in Europe, an unprecedented step.

He said he hoped that US officials would change their minds regarding the missile plan. 

"If this doesn't happen, then we will withdraw any responsibility for our retaliatory measures, because it wasn't us who initiated a new round of arms race development in Europe."

Putin added that in order to restore what he called "the strategic balance in the world," Russia would create a system to counter the US anti-missile one.

Russia last week tested a new ballistic missile capable of carrying multiple nuclear warheads and a new cruise missile.