George Bush has risked further confrontation with Russia by accusing president Vladimir Putin of "derailing" promising democratic reforms.
Mr Bush was speaking during a visit to the Czech Republic, ahead of the G8 summit.
He told a democracy conference in Prague: "In Russia, reforms that once promised to empower citizens have been derailed, with troubling implications for democratic development."
But he maintained: "America can maintain a friendship and push a nation toward democracy at the same time."
Earlier, the US president invited Russia's top generals to view America's controversial missile defence shield, saying Russia had "nothing to fear" by the project.
It was an attempt to resolve differences with Mr Putin over America's decision to deploy 10 missile interceptors in Poland and a radar system in the Czech Republic.
"My attitude on missile defence is that this is a purely defensive measure, not aimed at Russia," Mr Bush said.
"My message (to Russia) will be ... you should not fear the missile defence system, why don't you cooperate on the missile defence system?
"Why don't you participate with the United States? Send your generals over to see how such a system would work, send your scientists."
Mr Putin has warned that Russia will aim missiles at Europe if the US goes ahead with its plans.
He has dismissed American claims the shield is there to protect against attacks from Iran and North Korea.
The proposed missile shield has also been met with opposition from the Czech Republic.
"The people of the Czech Republic don't have to choose between being a friend of the United States or a friend with Russia," Mr Bush said
"You can be both. We don't believe in a zero-sum world."
He was speaking after talks with Czech Prime Minister Mirek Topolanek and President Vaclav Klaus in the medieval Prague Castle.
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