The Sunday Times of London, quoting unnamed diplomatic sources, says Russian President Dmitry Medvedev and his parliamentary supporters have scouted locations in western Russia, such as Kaliningrad and Belarus, which could host ballistic missiles for the first time since the end of the Cold War.

They would be deployed as an answer to U.S. efforts to put missile defense shield installations in Poland and the Czech Republic, the sources told the newspaper. U.S. officials say the missile defense efforts are aimed at "rogue states" such as Iran and North Korea, but Russia doubts this and sees them as provocative.

"How would Washington feel if we placed interceptor missiles on Cuba or Venezuela?" a Russian source said.

"These missiles would be pointed at Europe. It would be a perfectly legitimate step," he added. "If America wants to expand its military capabilities in Europe, then we have the right to act accordingly."