"When I dealt with my (Russian) counterparts, when I was head of our Navy ... it was very clear to me that their intention was to modernize their strategic forces," Mullen said at a press conference.

Mullen spoke after Russian President Dmitry Medvedev announced that Russia will boost its air and naval defenses by building more modern warships, nuclear-powered submarines, and an air and space defense system.

Medvedev's still-powerful predecessor, Prime Minister Vladimir Putin, has already announced a 28-percent increase in Russia's military budget for next year.

Mullen confessed to not being acquainted with the details of Russia's plan, but said it was "consistent with where ... the Russian military was going as far as back as a couple of years ago."

Mullen shrugged off Russia and Venezuela's planned military exercises in the Caribbean, within the US sphere of influence, as inconsequential.

"Clearly, those two countries ... can work together as they see fit. I just don't consider that a really significant threat at this particular point in time."

Earlier this month, Russia dispatched a pair of Tu-160 strategic bombers to Venezuela followed by a naval flotilla led by the nuclear-powered guided missile cruiser Peter the Great, one of the largest warships of its kind.

The Russian warships are scheduled to take part in joint maneuvres with the Venezuelan navy later this year.

Medvedev on Friday said he would sign agreements "to strengthen our cooperation" with Venezuela, after greeting his fiercely anti-US Venezuelan counterpart, Hugo Chavez, in Orenburg, Russia.

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