President Vladimir Putin on Wednesday accused Western countries of creating the Ukrainian crisis and using it to revive NATO.
Speaking after the Western military bloc agreed to boost its presence in eastern Europe, the Russian strongman warned Brussels and Washington against "any hysterics" if Russia chooses to retaliate.
"The crisis in Ukraine, which was basically provoked and created by some of our Western partners, is now being used to revive this military bloc (NATO)," Putin said at a government meeting.
In Cold War rhetoric, he complained to ministers and security chiefs of threats to Russia, citing NATO's strengthening of its presence in Eastern Europe as well as the U.S. missile defense program.
"There are a lot of new threats appearing. As you know, not long ago, a decision was taken on building up NATO forces in Eastern Europe," Putin said during a discussion on defense spending.
Russia needs to make sure that its security is "absolutely, reliably guaranteed," Putin said in remarks released by the Kremlin.
"We will be forced -- absolutely forced -- to take appropriate measures in response."
He insisted that Russia would only take action in response to Western moves and said he hoped that its strategy would not provoke "hysterics."
"I want to stress that all that we are doing are only retaliatory measures," Putin said.
"I would really like for there not to be any unnecessary fits of hysterics later, when these decisions are passed finally and start coming into effect," he said.
He said Russia planned "rearmament of strategic and long-distance aviation and continuing to form a system of aerospace defense."
He said Russia would only spend what it could afford however and a new arms race was "absolutely out of the question."
"We won't push our military spending up too high."
On Friday NATO agreed to set up a new rapid response force that could stand up to the expansionist threat from Putin.
Ukraine's new leadership has infuriated Russia by shifting its orientation towards the West, like fellow ex-Soviet Georgia.
Kiev announced its intentions to relaunch negotiations to join the Western military alliance in August, effectively restarting a process which was suspended in 2010 by pro-Kremlin president Viktor Yanukovych.
NATO has left the door open to membership for Ukraine on condition that it meets certain criteria.
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