August 5 2003, 10:18 Interfax-Ukraine

Russia will supply to Ukraine up to 1 mln t of grain

The total volume of supplies of Russian grain to Ukraine may constitute up to 1 million tonnes, Russia's Deputy Prime Minister, the Minister of Agriculture Aleksey Gordeyev has informed. He said such an agreement had been reached in the course of negotiations with Ukraine's Prime Minister Victor Yanukovych, held in Moscow on Friday. Gordeyev said the agreement concerned the sale of grain from the state intervention fund. He did not disclose the price of the sale, saying that this issue was "currently worked out by the Finance Ministry".

The state intervention fund was formed in Russia in the course of grain purchase interventions in late 2002 - early 2003. It currently contains 1.8 million tonnes of grain, the largest part of which is represented by the 3rd class milling wheat.

Gordeyev said grain supplies to Ukraine would not affect negatively the situation in Russian grain market and bread prices in the country.