The deployment of armed forces inside Russian territory, including close to the border with Ukraine, does not affect the fundamental interests of the United States, Moscow said in reaction to the U.S. answer to Russian proposals on security guarantees, as translated by Interfax from Russian text.

"We understand that any deployment of Russian armed forces in our own territory does not and could not concern the fundamental interests of the U.S.," a document circulated on Thursday and translated by Interfax from Russian says.

"We would like to reiterate that none of our forces are in Ukraine," the Russian document said.

"Meanwhile, the U.S. and its allies moved their military infrastructure eastward, deploying contingents in the territories of new [NATO] members. They circumvented the limitations of the Treaty on Conventional Forces in Europe and interpreted quite loosely the provisions of the NATO-Russia Founding Act on the renunciation of 'additional permanent stationing of substantial combat forces,'" it said.

"The situation that has evolved as a result of these actions is unacceptable. We insist on withdrawal of all U.S. armed forces and weapons deployed in Central and Eastern Europe, southeastern Europe and the Baltic States. We are convinced that national [defense] capacities in these areas are quite sufficient. We are ready to discuss this subject on the basis of Articles 4 and 5 of the Russian version of the draft agreement," the Russian document said.