by Xinhua writers Hai Yang, Yu Maofeng

    MOSCOW, Sept. 18 (Xinhua) -- The end of the U.S.'s European missile shield plan has been welcomed in Russia, setting the scene for a thaw in recent frosty relations between the two.

    U.S. President Barack Obama announced Thursday the U.S. would abandon a Bush-era missile defense shield program while initiating a "phased, adaptive approach" of the plan in Eastern Europe.

    The decision so far has been greatly appreciated by Russian media and analysts, who say it has cleared away one of the major obstacles for the resetting of relations between the two countries.

    RUSSIA WELCOMES U.S. SHELVING OF PLAN

    The missile plan and Russia's five-day war with Georgia in August last year resulted in Russian-U.S. relations plunging under the administration of Obama's predecessor George W. Bush to their lowest level since the Cold War.

    The Bush administration planned to deploy 10 missile interceptors in Poland and a radar system in the Czech Republic as part of its European missile shield to protect its European allies from missile threats from "rogue states."

    After Obama assumed office, Russia and the United States have both expressed willingness to improve their ties, yet key divergences on major issues of interest, including the missile defense plan, have impeded the pace of this "reset" process.

    Despite repeated assurances from the Obama administration that the missile defense plan was not targeted at Russia, Moscow had remained staunchly opposed to the plan, regarding it as a major threat to its national security.

    Russian President Dmitry Medvedev last year even threatened to install short-range Iskander missiles in its western Kaliningrad enclave to "neutralize" the perceived threat.

    However, hours after Obama announced the abandonment of the missile defense plan on Thursday, Medvedev welcomed the decision in a televised speech, saying it had created a fairly good environment for joint assessment of global missile proliferation risks.

    "We value the responsible approach of the U.S. president to our agreement. I am ready to continue our dialogue," said Medvedev, referring to their discussions during Obama's July visit to Moscow and their first meeting in London early April.

    Medvedev also hoped the two countries could jointly devise missile non-proliferation measures, and said he would discuss with his U.S. counterpart relevant issues during their meeting in New York on Sept. 23.

    Also on Friday, Russian Prime Minister Vladimir Putin hailed the U.S. decision as "correct and brave."

    REASONS BEHIND THE REVAMP

    According to Obama, the policy shift was guided by two principal factors: intelligence assessments of Iran's missile programs and "specific and proven advances" in U.S. missile defense technology.

    "The best way to responsibly advance our security and the security of our allies is to deploy a missile defense system that best responds to the threats that we face and that utilizes technology that is both proven and cost-effective," Obama said.

    He also said the new missile defense architecture would provide "stronger, smarter and swifter defenses" for the United States and its allies.

    However, according to Russian analysts long-awaiting such an announcement, there are two pragmatic reasons for the United States to shelve the missile defense plan.

    The first would be the tremendous expense of implementing the program, which also would demand a very long-term commitment of resources for development, said an article on the Russian Profile website.

    "A workable missile defense system does not yet exist," said Fyodor Lukyanov, editor in chief of the foreign policy journal Russia in Global Affairs.

    "To take political risks for a system that does not exist so far was probably not seen as the best way forward," he said.

    Alexander Pikayev, a senior disarmament expert, was quoted by the RIA Novosti news agency as saying the decision was due to internal U.S. debate as well as its slashing of its military budget amid the ongoing global recession.

    The second reason would be the questionable strategic value of the program.

    "It wouldn't cover the whole territory of Europe, and even from the American point of view, the location was not ideal," said Oksana Antonenko of the International Institute for Strategic Studies.

    Antonenko said the strategic debate had already shifted to installing systems closer to Iran.

    "Israel, or possibly Turkey ... There are areas where missile systems with existing capabilities would make more sense," he said.

    RECIPROCAL CONCESSION?

    The U.S. decision to overhaul its missile defense system is widely seen as part of a broader U.S. effort to reset ties with Russia as the White House is looking for cooperation on dealing with challenges such as the financial crisis, proliferation, climate change and terrorism.

    Taking into account Russia's firm position to link a new nuclear arms reduction treaty to the U.S. missile shield, the U.S. decision to scrap its anti-missile plans would pave the way for working out a replacement for the Strategic Arms Reduction Treaty (START I), which was signed in 1991 between the United States and the Soviet Union and is due to expire in December.

    Negotiators from both countries might now be able to reach consensus at the nuclear arms talks, said Pavel Zolotaryov, deputy director of the Institute of U.S. and Canadian Studies, a Russian think tank.

    They may also be able to move ahead on plans to establish information exchange centers in Brussels and Moscow that would monitor the globe and alert NATO members and Russia of missile launches, Zolotaryov said.

    Obama's shift has drawn sharp criticism at home as a weak-kneed capitulation to Russia and an abandonment of U.S. allies, but Russia may not regard it as a "concession" so much as a return to "common sense."

    Some analysts believe the U.S. move will not win Washington support from Moscow over Iran, which is developing its own nuclear program that it insists is for peaceful purposes.

    Russian Foreign Minister Sergei Lavrov reiterated Thursday that Moscow opposes U.S. efforts to impose extra sanctions on Iran over its nuclear program.

    Nevertheless, there are signs that the Kremlin might cooperate with Washington on Iran's nuclear issue.

    Medvedev on Tuesday told Russia experts from the Valdai international discussion club that Moscow would act "openly and in a responsible way" in resolving the Iranian nuclear problem.

    "Sanctions are not very effective, but sometimes we are forced to impose sanctions," he said.

    Moscow also offered an olive branch to Washington during Obama's visit to Moscow early July, when Russia allowed the transit of U.S. military cargos to Afghanistan across its territory, bypassing the troubled Pakistan.

    In response to the U.S. decision to scrap its missile shield plans, a high-ranking Russian military official said Friday that Moscow could drop plans to station tactical missiles in its Balticexclave.