Putin urges NATO changes

Putin covered many topics in his Kremlin press conference

MOSCOW, Russia (CNN) -- Russia does not consider NATO to be "a hostile organisation" but warned it needed to change, President Vladimir Putin has said.

Putin held a wide-ranging news conference in front of about 500 reporters at the Kremlin on Wednesday where he outlined many domestic and foreign policies, including the contentious U.S missile defence plan.

He said there are a number of options for providing security in Europe -- among them either dissolving NATO or taking Russia into NATO.

"It is not a tragedy for us that it exists," said Putin, but added, "there is no need for it" because the Russian threat that prompted its creation no longer exists.

He said the U.S.-led NATO alliance had outlived its usefulness, having been created during the Cold War to oppose the Soviet bloc.

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"There is no more Warsaw Pact, no more Soviet Union, but NATO continues to exist and develop," he said.

NATO's expansion into Eastern Europe creates "different levels of security on the continent ... which does not correspond to today's realities and is not caused by any political or military necessity."

He called for the creation of a "single security and defence space in Europe," which he said could be achieved either by disbanding NATO, or by Russia joining it, or by the creation of a new body in which Russia could become an equal partner.

Putin also said he does not plan to enter into any agreements with China to oppose moves by the U.S. to develop a National Missile Defense (NMD) shield.

Both Russia and China oppose any plans to abolish the 1972 Anti-Ballistic Missile treaty -- which would be a pre-cursor to developing NMD -- saying that the U.S. moves could threaten a new arms race.

"Russia is not entering into any joint action with any country in this specific direction. Russia has enough of its own nuclear deterrent to react to any changes in the area of international security," Putin said.

His comments on China came days after Putin signed a comprehensive friendship treaty with Chinese President Jiang Zemin.

During the news conference, Putin also called for peace in the Middle East, saying the current Israeli-Palestinian violence has "practically erased" past progress on finding a solution.

He also dismissed calls to remove the body of Bolshevik leader Vladimir Lenin from a Red Square mausoleum, saying it could lead to civil unrest.

In other domestic matters, Putin said Russia was moving towards liberalisation, low taxes and no unjustified government interference in economic activity.