Putin warns West against starting arms race

By Janet McBride

SOCHI, Russia (Reuters) - Prime Minister Vladimir Putin warned the West on Thursday against starting an arms race in Europe by stationing a U.S. missile defense shield near Russia's borders and said there was no basis for a new Cold War.

Putin, who has taken a robust stance on Russia's conflict with Georgia over the South Ossetia region, blamed Washington rather than Moscow for resurrecting Soviet-style rhetoric.

"Today there are no ideological contradictions. There is no basis for a Cold War," Putin told a group of reporters at a three-hour lunch briefing at his retreat in the Black Sea resort of Sochi.

"There is no basis for mutual animosity ... Russia has no imperialist ambitions," he said.

Russia was criticized by the United States and European governments for sending troops into Georgia last month and then recognizing the two breakaway regions of South Ossetia and Abkhazia as independent states.

Some Western leaders accused Moscow of using Soviet-style tactics in dealing with its neighbor over South Ossetia. Others feared Moscow might take similar steps to reassert its influence over other countries it long dominated in the Soviet Union.

U.S. Vice President Dick Cheney charged Moscow earlier this month with using intimidation and "brute force".

"There is no more Soviet threat but they are trying to resurrect it," Putin said.

He questioned criticism of Russia for crushing Georgia's bid to retake South Ossetia by force, which prompted concern over energy security in the region and rattled Russian markets with shares losing more than 40 percent of their value since May.

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"What did you expect us to do? Respond with a catapult? ... We punched the aggressor in the face. Did you expect us to wipe the bloody snot off our faces and bow our heads?" he said.

Putin said the stock market falls were due to the global credit crisis and not Russia's intervention in Georgia.

Putin, his speech peppered with strong language, has spearheaded criticism of the United States, accusing the U.S. administration of stoking the conflict to help the Republican candidate in the race for the White House.

His successor, President Dmitry Medvedev, once thought to be firmly in his mentor Putin's shadow, has steered a more balanced course, setting up a diplomatic "good cop, bad cop" routine.

In Sochi, Putin accused the United States of acting like "a Roman emperor", but also said Moscow would maintain relations with the next U.S. president due to be elected in November.