Baltic Nato member Estonia yesterday slammed its neighbour and Soviet-era master Moscow for deploying missiles near their border, saying the move ran counter to ongoing fence-mending efforts.

"Russia's decision to position Iskander-class missiles on its western border is an alarming move," Estonian Foreign Minister Urmas Paet said.

"While both sides speak of a desire to improve Nato-Russia relations and develop a partnership, this decision sends a negative signal," he added.

On Saturday, the commander of Russia's ground forces Alexander Postnikov told Moscow Echo radio that Iskander missile systems were being put into service in the military region around the city of Saint Petersburg, which lies some 140 kilometres from Estonia.

Mr Postnikov said the missiles would mainly be based in that region, but added they could also be deployed elsewhere at short notice.

Russia and the US have sparred over Washington's plans to deploy anti-missile facilities in the former communist bloc, with Moscow disputing the US position that they are meant to ward off a potential threat from Iran.

Over the past year, however, Nato powerhouse the United States has been striving to "reset" its relationship with Russia and mend fences.

Staunch US ally Estonia, a nation of 1.3 million people, was ruled by the Soviet Union for five decades but regained independence in 1991 when the bloc crumbled.