Lifting wheat ban yields fresh trouble for Russia

Russia faces a dilemma. How does it balance the interests of its big grain producers, which want unrestricted sales to foreign markets – a move that would drive domestic prices higher – against those of millions of Russians worried about food inflation?

The outcome of this debate will resonate well beyond Russia’s borders and is likely to shape global grain markets in the summer of 2011, following the imposition of a ban on wheat exports in 2010 due to a poor harvest. Prospects are looking better in 2011..

ESO: Background information: Russia put to the test by grain shortage http://www.europeansources.info/record/russia-put-to-the-test-by-grain-shortage/

ESO: Background information: Wheat trading jumps on Russia crisis http://www.europeansources.info/record/wheat-trading-jumps-on-russia-crisis/

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