13 November 1998

Russia aids prices

SUBSTANTIAL stocks of wheat and beef are expected to flow out of EU intervention stores this winter as food aid for Russia, helping relieve some of the downward pressure on prices.

In anticipation of an imminent request from Moscow, Brussels has already drawn up plans to ship 1m tonnes of wheat, 500,000t of rye, 150,000t of beef, 100,000t of pigmeat and 50,000t of milk powder in a package worth £280m (400m ecu).

Strict conditions will apply, forbidding re-exporting and insisting profits from Russian market prices will be spent on social programmes. &#42