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Though seeking to find new ways of working...

"We"ve made it very clear that even as we seek to find new ways of working with Russia we also are very clear that we don"t accept certain of their policies, the assertion of their sphere of influence, particularly in this [Baltic] region," Flournoy said.

However, she acknowledged that NATO and Russia could be very productive.

"We believe NATO and Russia can be very productive, with a working relationship going forward, and it"s really up to Moscow in many ways to sort of pace the relationship. I think NATO is very willing to explore areas of cooperation going forward," Flournoy said.

She said she had also discussed with Estonian Defense Ministry officials issues of practical cooperation between Russia and the alliance, including non-proliferation and counterterrorism.

"I think there are some differences of perception between Russia and many of the NATO allies that need to be discussed and addressed," she said.

On Iran, she said its recent actions

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