Sochi, Russia - Russian President Dimitry Medvedev Friday described Poland's decision to go ahead with the stationing of parts of a US anti-missile shield on its territory as "sad for Europe," but simultaneously spoke out against "dramatizing" the conflict.

Following talks on the situation in Georgia with German Chancellor Angela Merkel, Medvedev said further talks were needed.

The decision taken Thursday by Poland, and earlier by the Czech Republic, to host elements of the US shield, "has the Russian Federation as its target," Medvedev said.

"This is sad for Europe, sad for all in this densely populated continent," he told a joint press conference after the meeting in Sochi on the Black Sea.

Russia would continue discussions on the issue with "all actors," the president said, while warning that the US move did not contribute to calm.

Merkel insisted the shield was not directed at Russia but was rather protection against countries like Iran. She also called for further discussions to clear up differences of opinion.

Following years of talks, the US and Poland initialled a deal in Warsaw on Thursday on stationing 10 interceptor missiles on Polish soil.

The US signed a deal with the Czech Republic in Prague in early July that provides for a radar station to guide the missiles to be based on Czech territory. (dpa)