"Russia has a last opportunity to take the responsible path," NATO's secretary-general warned.
"The launch aimed to confirm the advanced missile system's capabilities and flight characteristics," the Russian Defense Ministry said.
"For over five years, the United States has pursued diplomatic and technical avenues with Russia aimed at preserving the INF Treaty," NATO Secretary-General Jens Stoltenberg said.
All of NATO's 29 members will take part in the exercises, as will the alliance's partners Sweden and Finland.
The retired four-star general shifted in his seat and looked away as Trump branded Germany a "captive" of Russia, but the White House says he was simply underwhelmed by the catering.
Trump has said the U.S. should spend less but he spent more on Europe's defense, all for a Russian threat he disputes is there.
Trump boasted that the NATO leadership is very fond of him, but says Russia must be thinking "if we did like this guy, we made a big mistake."
With the establishment of a new Cyber Operations Center, NATO has launched a new, historic campaign of electronic warfare.
The U.S secretary of state said, "There is broad consensus among all the NATO members that there is no normalization of dialogue with Russia today."
The NATO chief said Kim Jong Un's potentially nuclear-capable missiles threaten Europe, but North Korea said it's the U.S. that's at risk.
"It is more unpredictable, and it's more difficult," Stoltenberg said when asked about the changes in the world over his 30-year career.
Jens Stoltenberg announced 3.8 percent of spike in real terms across Europe and Canada.
Jens Stoltenberg spoke as 4,000 troops prepare to shore up defenses around the Baltic Sea.
Historically, NATO and the EU don't normally work together, but this is changing.
"This is Russia destabilizing Eastern Ukraine," said Jens Stoltenberg.
A 2013 drill on the edge of the Stockholm archipelago was a simulated attack, Stoltenberg said.
Kremlin spokesman Dmitry Peskov said that Moscow would move to protect its interests
Jens Stoltenberg's visit was described as a "milestone" by Ukrainian officials.
The figures showed defense spending is set to fall by 1.5 percent in real terms this year after a 3.9 percent fall in 2014.
NATO's Secretary-General said the measures, a response to Russia's annexation of Crimea, were defensive.