July 9 (Bloomberg) -- Russia is ``extremely disappointed'' that the U.S. signed a deal to deploy part of a missile-defense system in the Czech Republic and will respond appropriately, President Dmitry Medvedev said.

``We won't become hysterical about this, but we'll consider how to respond,'' Medvedev told reporters in Toyako, Japan, today after a Group of Eight industrial nations summit.

The Russian leader said the agreement to host a radar tracking station, signed in Prague yesterday by the U.S. and Czech foreign ministers, represented a ``new stage'' in the development of the missile shield. ``This means the idea will be realized,'' he said.

U.S. Secretary of State Condoleezza Rice told reporters in Sofia that Russia's reaction to the agreement is ``disappointing'' given U.S. efforts to reassure them.

``I still hope that Russia will look at the fact that Iran is developing ever longer-range missiles which they apparently plan to test and that Russia will see that it is not aimed at them,'' she said.

Russia warned yesterday that it may respond militarily to the deployment of the U.S. system, which it sees as a threat to its security. Russian leaders have threatened to aim nuclear missiles at the planned bases in the Czech Republic and Poland. Interceptor missiles would be based in Poland, which is still in negotiations with the U.S.

`Military Methods'

``If a U.S. strategic anti-missile shield is deployed near our borders, we will be forced to react not in a diplomatic fashion but with military methods,'' the Russian Foreign Ministry said in a statement on its Web site. The radar deal must still be ratified by the Czech parliament, the ministry noted.

Medvedev and U.S. President George W. Bush made no progress toward resolving their differences on the missile shield during their meeting at the G-8 summit.

``They conducted rather half-hearted negotiations with us, which led nowhere,'' Medvedev said. ``Quite the reverse, they have signed an agreement'' on the system.

White House press secretary Dana Perino said Bush repeated to Medvedev in their meeting that the system is intended to thwart an attack from Iran and is not aimed against Russia. Iran today test-fired a missile with a 2,000-kilometer (1,240-mile) range as tension in the region has increased over the Persian Gulf nation's efforts to enrich uranium.

`Joint Partnership'

``We want to work together with the Russians and the Europeans on a joint partnership,'' Perino said, adding that Bush and Medvedev have agreed to continue talks on the issue.

The Russian president has maintained Russian opposition to the missile shield since he came to office in May. The Russian Foreign Ministry said in yesterday's statement the proposal for the creation of a ``truly collective missile-defense system'' had been ``ignored'' by the U.S.

It also complained that the U.S. had backtracked on promises to provide permanent access for Russian inspectors to the sites and not activate the shield until there is a verifiable threat from Iran.

To contact the reporters on this story: Henry Meyer in Toyako, Japan, at hmeyer4@bloomberg.net; Sebastian Alison in Moscow at Salison1@bloomberg.net

Last Updated: July 9, 2008 07:30 EDT