Russia hints at missiles in Kaliningrad

Russia has raised the possibility of moving some of its missiles to Kaliningrad. This is the small piece of Russian territory which is surrounded by European Union territory - Poland and Lithuania - and the Baltic Sea. Deputy Prime Minister Sergei Ivanov linked such a move to plans by the US to build an anti-missile shield in Poland and the Czech Republic. Russia wants the US to use Russian facilities to deal with the perceived threat of missiles from so-called rogue states. Russia has already threatened to aim missiles at Europe and the Kaliningrad suggestion adds to the tension over US bases.

So why Kaliningrad and why now after President's Bush and Putin tried to ease tensions? Kerry Skyring spoke to Natalia Leshchenko Russia analyst at Global Insight - a consultancy specialising in country and market analysis..