(Recasts, adds NATO reaction, analyst)
By Christian Lowe
MOSCOW, Jan 28 (Reuters) - Russia has halted plans to deploy
missiles near the Polish border, a Russian news agency quoted
the military as saying on Wednesday, in the clearest sign yet
Moscow is seeking better ties with the new U.S. administration.
Moscow had threatened to deploy the missiles to counter a
missile shield proposed by former President George W. Bush for
eastern Europe. President Barack Obama has not reversed Bush's
decision but has said he would consider it on its merits.
Analysts said if confirmed the Russian move -- which follows
a phone conversation this week between Obama and Russian
President Dmitry Medvedev -- could open the way for renewed
dialogue on other issues that divide their countries.
"The earlier Russian announcement that they were going to
deploy missiles ... and point them at NATO allies was unwelcome.
If that decision has now been rescinded, it is a good step,"
said NATO spokesman James Appathurai.
The U.S. envoy to NATO had earlier said that, if confirmed,
the Russian move would be a "positive step."
Medvedev said a day after Obama's election victory he was
ordering the deployment of Iskander missile systems to Russia's
Western outpost of Kaliningrad, which borders European Union
members Poland and Lithuania.
"The implementation of these plans has been halted in
connection with the fact that the new U.S. administration is not
rushing through plans to deploy" elements of its missile defence
shield in eastern Europe, Interfax quoted an unnamed official in
the Russian military's general staff as saying.
It was not clear though if the report represented a firm
shift in policy. There was no confirmation from the Russian
military that the Iskander deployment was being suspended and a
Kremlin official said he could not offer immediate comment.
The threat of deploying the Iskander missiles was largely
symbolic because, military analysts said, Russia does not have
enough operational missile systems to station in Kaliningrad.
The missile issue is likely to be on the agenda if, as
expected, Medvedev and Obama meet on April 2 on the sidelines of
a Group of 20 summit in London.
"It (the suspension of missile deployment) is a signal to
Obama of Moscow's goodwill," Yevgeny Volk, an analyst in Moscow
with the Heritage Foundation think tank, told Reuters.
"In response they want a decision not to deploy the missile
defence shield in eastern Europe."
Obama also faces a series of other challenges in dealing
with Russia, including bridging differences over Iran, NATO
expansion and strategic arms control. For a factbox, click on
[].
Some observers believe the Kremlin may be softening its
assertive foreign policy style because the economic slowdown --
which has seen the rouble lose about a quarter of its value
since July -- has dented its confidence.
U.S. POLICY SHIFT?
The administration of former U.S. President George W. Bush
angered the Kremlin with its push to deploy interceptor missiles
in Poland and a radar in the Czech Republic.
It said the system was needed to protect from potential
missile strikes by what it called "rogue states" -- specifically
Iran and North Korea.
The White House has not announced any change of policy on
the missile shield, but a nominee for a top Pentagon post in the
Obama administration said this month the plan would be reviewed
as part of a regular broad look at policy.
Russia has argued that the proposed system would threaten
its own national security and was further evidence -- along with
the eastward expansion of the NATO alliance -- of Western
military influence encroaching near its borders.
The row over the shield has helped drive diplomatic ties
between Moscow and Washington to their lowest level since the
end of the Cold War.
But Russian officials have said they are encouraged by early
signals from the Obama administration and hopeful of a fresh
start in their relations.
(Additional reporting by David Brunnstrom in Brussels; Writing
by Christian Lowe; Editing by Ralph Boulton)
(conor.humphries@thomsonreuters.com; +7495-7751242)
