Nato has pledged to bolster its defence capabilities in response to Russian actions in Ukraine, but said it would stick to a key agreement with Moscow.
The announcement came hours after the US president pledged $1bn (£600m) to boost military deployments to Europe.
Russia earlier said it could pull out of the 1997 Nato-Russia Founding Act should there be major Nato deployments in eastern and central Europe.
Nato accuses Russia of backing rebels in Ukraine - a claim denied by Moscow.
In March, the Kremlin annexed Ukraine's southern Crimea peninsula - a move condemned by the West.
On Tuesday, heavy fighting between Ukrainian government troops and pro-Russia separatists was reported in and around the rebel-held city of Sloviansk in the east.
'Wake-up call'
Speaking after a meeting of Nato's defence ministers in Brussels, the alliance's Secretary General Anders Fogh Rasmussen said Russia had increased its military spending by 50% in the last five years, while Nato cut funding by 20% over the same period.
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