Financial Times FT.com

Moscow acts to control grain

By Javier Blas, Commodities Correspondent

Published: August 1 2008 03:00 | Last updated: August 1 2008 03:00

Russia plans to form a state grain trading company to control up to half of the country's cereal exports, intensifying fears that Moscow wants to use food as a diplomatic weapon in the same way as Gazprom has manipulated natural gas sales.

The move by Moscow, the world's fifth-biggest exporter of cereals, has been sharply criticised by US agriculture diplomats as a "giant step back" to the Soviet era.

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