Russia-New State grain company.

RUSSIA.

NEW GRAIN COMPANY.

Russia is to form a state owned grain company, that will control the majority of the cereal export from the country.

The worlds fifth biggest exporter of cereals, has vast areas of land untouched that could be utilized to produce much more grain.

Western diplomats and agricultural experts say, that Russia plans to transform its agency for the Regulation of Food Markets, into a state trader which will control 50pc of all exports.

This new nationalized entry into the grain market, will give Russia tremendous clout coupled with the supply of oil and natural gas to Europe.

There is a fear, of the dependence on foreign imports of cereals in Europe, in view of the current world shortage of commodities.