Putin: Nuke the CFE!

Mr Putin made the threat during his annual address to parliament - which he said would be his last as president.

He also hit out at an influx of foreign money which he said was being used to meddle in Russia's internal affairs.

US Secretary of State Condoleezza Rice dismissed Russian concerns over the missile shield as "ludicrous".

BBC diplomatic correspondent Jonathan Marcus says Mr Putin's speech marks a significant raising of diplomatic stakes.

The Russian president suggested that his country should freeze its compliance with the 1990 Conventional Forces in Europe (CFE) treaty - which limits military deployments across the continent - until all Nato countries had ratified it.

The treaty was adapted in 1999 after the collapse of the Warsaw Pact, but Nato states have not yet ratified the new version, linking it to the withdrawal of Russian forces from Georgia and Moldova.

Mr Putin accused Nato states of exploiting the situation to increase their military presence near Russia.

He said that the Russian moratorium would continue "until all countries of the world have ratified and started to strictly implement it".

This is silly. The BMD posts in eastern europe are going to be so small that unless Russia has only as many working nukes as I have fingers on my hands, they have nada to worry about.