* Russia to rearm and boost nuclear forces as NATO expands * Russia says U.S. eyes its and neighbors' natural wealth * U.S. expresses no concerns about announcement (Adds U.S. reaction, paragraphs 12-14) By Dmitry Solovyov MOSCOW, March 17 (Reuters) - Russian President Dmitry Medvedev said on Tuesday that Russia would rearm its military and boost its nuclear forces despite the raging economic crisis because U.S.-led NATO is expanding toward its borders. Moscow has sent conflicting signals to Washington since the election of Barack Obama as U.S. president. The Kremlin says it wants to improve ties with the White House, but it has also taken steps to stem rising U.S. clout in ex-Soviet states. "Attempts to expand the military infrastructure of NATO near the borders of our country are continuing," Medvedev told an annual meeting with Defense Ministry staff. Russia sees plans by the previous U.S. administration to push for NATO membership for ex-Soviet Ukraine and Georgia, and to deploy elements of a missile shield in Eastern Europe, as a direct threat to its national security. And while welcoming Obama's desire to give ties a fresh start Medvedev, who will meet Obama in London on April 1, has said he expects Washington to match declarations with deeds. Medvedev told Russia's top military brass that the prospect of NATO's expansion, combined with the threat of local crises and international terrorism, "requires a modernization of our armed forces, giving them a new modern shape." "The primary task is to increase the combat readiness of our forces. First of all, our strategic nuclear forces. They must be able to fulfill all the necessary tasks to ensure Russia's security," Medvedev said. Military expert Alexander Sharavin, director of the Moscow-based Institute of Political and Military Analysis, said Russia "should not be carried away by this anti-NATO rhetoric." "NATO's expansion in itself does not present any threat..." he told editorially independent radio Ekho Moskvy. "This organization cannot present a threat -- it has multidirectional interests, because there are more than two dozens states there." LOW-KEY REACTION FROM U.S. Russian Defense Minister Anatoly Serdyukov said "the U.S. leadership desires to attain global leadership and expand the U.S. and their allies' military presence in regions adjacent to Russia." "America's aspirations have been aimed at getting access to mineral, energy and other resources of CIS countries, and it has actively supported processes aimed at ousting Russia from the area of its traditional interests," Interfax news agency quoted Serdyukov as telling the meeting with Medvedev. The United States expressed no concerns about Medvedev's announcement. "As long as we have a good dialogue and a good understanding of what we are both developing our militaries for, I don't see that it poses a problem or a threat that we should be concerned with," Pentagon press secretary Geoff Morrell said. The State Department said the Obama administration looked forward to a "very productive" relationship with Russia. Russia and its ex-Soviet allies in Central Asia have allowed transits of nonmilitary NATO cargo across their territories en route to U.S.-led military operations in Afghanistan. But almost simultaneously, Kyrgyzstan decided last month to close a key U.S. airbase after securing more than $2 billion in loans and aid from Russia. After the meeting with Medvedev, the commander of Russian strategic nuclear forces said Russia would soon deploy its first regiment of RS-24 intercontinental ballistic missiles, an upgraded version of the formidable Topol-M mobile complex. The new missiles would enter service after Dec. 5 when Russia's START-1 (Strategic Arms Reduction) Treaty with the U.S. is due to expire, local news agencies quoted Col.-Gen. Nikolai Solovtsov as saying. Facing scathing criticism by the opposition and staunch resistance from many generals, the Kremlin launched this year an ambitious reform to turn the largely demoralized armed forces into a smaller, more mobile and better equipped military. Military experts say the reform was prompted by Russia's five-day war with Georgia last August. Russian troops quickly advanced and seized large chunks of Georgian land after Tbilisi tried to retake its rebel South Ossetia province by force. But the war also exposed a lack of modern weapons, such as high-precision bombs, modern communications and spy drones. (Writing by Dmitry Solovyov; Editing by Jon Boyle)
Protestors push away the media as they protest against a procession commemorating the Latvian Waffen SS unit, also known as the Legionnaires, at the Freedom Monument in Riga March 16, 2009. ...
