"We see in the international arena there are attempts to create competition to our organization," Putin told leaders of parliaments from Russia, China and four Central Asian states that make up the Shanghai Cooperation Organization (SCO).

"I think it would be right if we did not engage in this and instead continued with the positive, constructive work that we have been doing for the past several years."

Putin did not refer to the United States explicitely and did not elaborate on the source of the "competition" in Central Asia that he referred to.

But Boris Gryzlov, the speaker of the lower house of the Russian parliament, made clear that Russia was wary of US moves to attenuate what officials in Russia and China say is the growing regional influence of the new organization that they lead and of which Washington is not a member.

"Is it possible to fight terrorism and drug trafficking in the region without the participation of the states of the region? Of course not," Grzylov said in remarks to counterparts from SCO countries, broadcast on state television.

"But a proposal to create in Central Asia an organization parallel to the SCO, which the United States has called for, suggest that this can be done.

"This does not help the fight against threats" to security in Central Asia, Gryzlov said, adding: "It only makes the threats bigger."

Gryzlov did not elaborate on the US proposal.

The Kremlin meeting was attended by top lawmakers from SCO countries including U Bango, chairman of the standing committee of the Chinese legislature.

The meeting of top SCO lawmakers was the first of its kind since the organization was founded in 1996.

It was called to coordinate legislation aimed at "the future strengthening of the authority of the SCO" and enhancing "security and stability in the general Eurasian space," the Kremlin said in a statement.

Iran, with observer status, is among other countries of the region that have expressed interest in joining the group. Iranian President Mahmoud Ahmadinejad was expected to attend the SCO summit in Shanghai next month.

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