Russia has suspended plans to retaliate against a proposed U.S. missile shield by putting missiles along its European border, the country's Interfax News Agency reported Wednesday.

The report, which quotes an unidentified Russian military source, said the move is a result of the policies of U.S. President Barack Obama.

"The implementation of these plans has been halted in connection with the fact that the new U.S. administration is not rushing through plans to deploy" its missile defence shield in eastern Europe, said the news agency, according to Reuters.

U.S. envoy to NATO, Kurt Volker, told Reuters the move would be a "very positive step."

Russia's military hasn't confirmed the report.

Russian President Dmitry Medvedev announced last year that Russia could place Iskander missiles in Kaliningrad, a western outpost located on the Baltic Sea between Poland and Lithuania.

Former U.S. president George W. Bush proposed stationing interceptor missiles in Poland, along with radar in the Czech Republic.

Obama has said the plans will be reviewed.