PRESIDENT Vladimir Putin says the National Security Agency (NSA) surveillance is necessary to fight terrorism, but added that the government must "limit the appetite" of the agency with a clear set of ground rules.
Putin's comment on Thursday was surprising support for President Barack Obama's administration, which has faced massive criticism over the sweeping US electronic espionage program.
He was speaking at his tightly choreographed annual press conference, a televised affair that goes on for many hours and attracts hundreds of journalists, some of whom were holding signs - or in one case an Olympic mascot teddy bear - in an effort to get called on for a question in front of a nationwide audience.
The Kremlin sees the event as key in burnishing Putin's father-of-the nation image.
Putin, a 16-year KGB veteran and the former chief of Russia's main espionage agency, said that while the NSA program "isn't a cause for joy, it's not a cause for repentance either" because it is needed to fight terrorism.
He argued that it's necessary to monitor large numbers of people to expose terrorist contacts. But "on political level, it's necessary to limit the appetite of special services with certain rules", he said.
Putin added that the efficiency of the effort - and its damage to privacy - is limited by the sheer inability to process such a huge amount of data.
Asked about former NSA contractor Edward Snowden, whom Russia has granted asylum, Putin insisted that Moscow isn't controlling him.
He argued that any revelations published by Snowden must have come from materials he provided before landing in Russia, and reaffirmed that Moscow made providing refuge to Snowden conditional on his halting what he called ant-American activities.
Putin said he hasn't met with Snowden. He insisted that Russian security agencies haven't worked with him and have not asked him any questions related to NSA activities against Russia.
Putin dismissed a report claiming that Moscow stationed its state-of-the art Iskander missiles in its Kaliningrad exclave region that borders NATO and EU members Poland and Lithuania, but added that he continues to consider such a move as a possible way of countering the US-led missile defence system in Europe.
Both Poland and Lithuania have expressed concern about such a possibility, and Washington warned Moscow against making destabilising moves. Putin said Russia has long considered it, but added that "we haven't made the decision yet" on deploying them.
Turning to Ukraine, Putin insisted that Russia's $US15 billion ($A16.99 billion) bailout of the economically struggling country was driven by a desire to help a partner in dire straits and wasn't linked to its talks with the European Union.
Ukraine has been an important customer for Russian gas and a key partner in industrial co-operation since Soviet times, he said.
The Kremlin's move comes as Ukrainian President Viktor Yanukovych faces massive street protests over his decision to spike a pact with the EU in favour of closer ties with Russia.
Asked about the possibility of similar protests hitting Moscow one day, Putin said such demonstrations must be held in strict conformity with the law to prevent the nation from sliding into chaos.
Putin confirmed that the amnesty bill passed by the Kremlin-controlled parliament on Wednesday will apply to the two members of the Pussy Riot punk band and the 30-people crew of a Greenpeace ship facing hooliganism charges for their protest at a Russian oil rig in the Arctic.
Asked whether he felt sorry for the two women, Putin stood by his strong criticism of their irreverent protest at Moscow's main cathedral, describing it as a publicity stunt that "crossed all barriers".
He also questioned the Greenpeace protesters' intentions to protect the Arctic and alleged that they were trying to hurt Russia's economic interests. He added that he did not mind that charges against the Greenpeace team were dropped under Wednesday's amnesty bill, but that he hoped that "this will not happen again".
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