so we decided let's announce in order to know how do we know if you can and see what happens. who was surprised because we were professional women housewives it was different political ideologies and religions. because in reality we had our differences other than our views regardless of the military presence. nevertheless it was the issue that was able to bring us together . every month we give you the future we help you understand how we'll get there and what tomorrow brings the best in science and technology from across russia and around the world. join us our technology update on our jeep.

one of russia's most wanted terror suspects has been released after a polish court turned down the prosecutor's request for his forty day arrest. was

it detained as he arrived in the polish capital warsaw to take part in an international conference on chechnya however is still pending a court hearing on whether he can be handed over to russian authorities. afghanistan's president hamid karzai has a urged his citizens to vote in saturday's parliamentary election and ignore threats from the taliban at least twenty four people have been killed and eighteen abducted in election related attacks across the country the violence has escalated despite increased police efforts to provide safety. a suspected russian mafia boss is it being treated in a moscow hospital after an attempt on his life nicknamed grandpa his son he is thought to have fallen victim to a gangland turf war reports say the hit man missed the target with several shots before escaping from a nearby building. archie's interview program spotlight is up next to this summer

russia had to cut grain exports after a prolonged heat wave destroyed much of the harvest talks to. the head of the russian grain union about the worldwide implications of the restrictions. hello again and welcome to spotlight. on. today my guest is out of. the unusually dry and hot summer has destroyed much of this year's crop and rush the state had to impose restrictions. to keep prices down but what does it mean for the rest of the world will be asking the president how the russian. russia is one of the world's biggest grain

exporters but there's some a severe drought has badly affected the harvest in order to maintain supplies atoned russia has imposed a ban on exports that's boosted world grain process to a two year high and prime minister putin says the ban may remain in place until the autumn hold the next year the un says two years without crushing grain in the market may lead to serious trouble in two thousand and eight of blip in green supplies led to food riots in some developing country. chesky thank you for joining us welcome to our program. my first question is about something that many people including our audience worldwide they're concerned about how significantly has the russian embargo changed the world grain prices and can it change them and how significant is that price. if and does it. change anything any more as the change happened already bears on this is good news it has already been

imposed therefore in the green on the world market has already made it seem from now on only improve if by any chance really. allow exporting their certain amount of grain because this could have a positive impact only them and the world prices would drop slightly with them says the new however nobody is expecting russian producers to export significant amounts of grain in the season and we aren't expecting the ban to be lifted on january first as this would result in automatically be calling off domestic and world prices you're right there is the purpose of the ben was to prevent the address to growth of the local tri system but at present the gap between domestic and a world crisis is too big to leave the van she wanted tiny correctly equal the prices the international community fears the repetition out the food crisis of two

thousand and seven which sparked riots and countries from bangladesh to mexico spotlights in the dimmy the has more. the worst drought in at least half a century has led to fears of a green surety in russia the government has banned their expert await the next twelve months the attempt to protect consumers inside the country since shock through international markets bread prices to want to hear high it's a reminder of the situation in two thousand and seven and two thousand and eight when hutu did use to writing around the world back then iran thirty countries imposed restrictions on the explant of a good cultural products prices soared and public discontent is believed to have triggered the collapse of governments in haiti and madagascar this year mozambique has become the first country to suffer a food shortage is the government's decision to creese grid prices by thirty

percent to riots you know which at least seventy people died and around three hundred were wounded in the violence the price rises were revoked india has had their way to export ban for the us. three we. do have good lifestyle and some great stories. disturb the volatility on the global market and i did nations food and agriculture organization is who did an extraordinary meeting on crises next week. do you think russia's in bargo could trigger a food crisis and underdeveloped countries ones that depend on grain imports do you think the situation in those countries could get out of control again would they blame russia for it. but they know this won't happen in the world has enough resources to compensate for russia's absence on the world market. weak

stock east march larger now than three years ago when the world indeed faced problem of food supply. at that time crisis including international ones worth one point five times higher than to d. c. would. governments and the grain export embargo in order to protect consumers from a drastic pries growth within the country how did this decision affect grain producers they must have lost money because of it i mean they would have benefited from higher prices right. yes of course you're right producers in our southern regions that are rather good harvest spider extremely negative weather conditions and they didn't benefit from the embargo. price growth stopped and even reverse. prices have been dropping since the implementation of the ban not by

much though but there are still dropping certainly this fact makes for adoption less attractive to investors and has a negative effect on their revenue. could use an idea of how much they lost the most calculation in exact amount possible it depends on quite a number of factors such as their investments their nat cost their harvests to colleges regions and so forth. and therefore we cannot sum up their taunts a loss is however we can tell how much is lost through prices for instance but the southern federal district is close to see ports and therefore insulin just you can expand his or lol so by the time the export ban was imposed their price was almost six thousand roubles for one ton of brain to date

has drilled by almost one and a half thousand rubles and that's how much they lose in which john and this is quite a lot of good it is that as for the world market the price is grown by at least fifty dollars. in southern russia any grain producers dependency ports they exported their grain through those ports but now. their logistics expenses they're being replaced by costly one such as those crane producers now have to transport their grain to the northern and eastern regions of russia. is there an efficient infrastructure for that. yes the reason for structural for moving such amounts regions have about nineteen million tons of surplus grain and thirteen million tons in southern russia and six million in siberia. on the other hand the need for grain in the boulder region and

central russia is about sixteen million tons and add a couple of millions for places that traditionally don't produce their own grain like sink petersburg and moscow. so in tonsil we need to transport about eighteen million tonnes that's not a problem for our infrastructure in the city the only problem is with the cost of transport. for instance the region concerns such as mills and ford or factories used to pay for knish half thousand herbals a tonne. which is the prize in southern ports that is six thousand rubles a tonne minus the cost of transportation bill which is about a thousand and a half rubles a tonne. but now after the ban they have to pee six thousand euro rubles

plus in another fifteen hundred trubel so tonne for transporting grain from the south to the volga region so that's seventy five hundred were bulls so they prize by three thousand rubles overnight. of course that's quite a long at so now consumers refused buying at such high prices producers in southern russia refused cutting prices they used to export their grain at six thousand and ton another asked to sell it at three thousand so that can buy at the old price self four and a half thousand roubles a tonne so the situation is rather unusual and complicated but we hope that stamps will be taken soon the president has ordered to cut the logistics expenses you know in order to reduce the cost of transporting grain for both consumers and producers

. as i understand in response to some bar go in the world market will have to adjust and regroup reconfigure itself if it's going to be used for example you mentioned her. grain and other producers. don't you think that by the time the ban is lifted our own producers will lose their current position in international markets. and that. depends on how competitive prices are. actually the difficulties we are going to face are of a different nature i'm not sure really ward that we would lose our positions on the world market because we only gained them less than ten years ago and we want them through our load competitive prices that's because our projection cost is low but as long as all farmers agree to low wages we will have better prices than our

rivals in europe or america and the problem is that russia will now be regarded as an unreliable country we need the decision to ban green exports so unexpectedly that the world no longer trusts us and this fact will impact prices that consumers would rather pay five dollars more to our rivals than paying less to us but not having confidence that we will deliver. and it will take us some time to restore our reputation and hearing which will be losing money. is saying that because of the band we failed to deliver even the grain that has already been paid for under existing contracts yes among other things. none of the russian exporters too can vanish of the force majeure provision to avoid their losses if they had contracts with egypt and other countries support

stuff so known their old buying grain from other countries and delivering it to customers at contractual prices to fulfill their obligations. because they don't want to risk losing their major customers a dog that puts a pit to keep open but he says out of the president of the russian grain you spotlight will be better shortly after a break we'll continue this interview so stay with us to end up. wealthy british style stock.

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welcome back to the spotlight i'm just reminded that my guest in the studio today is. the president of the russian grain union we're talking about the grain and poise imposed by the russian government this. to protect the prices on the internal market. in the world markets the government. and we not only avoid signing any new contracts but we also fail to even those that paid for do you think it was the only possible solution have been done differently. believe it could have been handled in a different way i think it was done in too much. i think nothing would have happened if the data had been moved forward. with.

september first say you. have changed. both the world and. we were going to push forward with that we should enable the existing commitments to be. in then take this then there would be no problem. behind. this for example not to let someone make. changes for them any advance information as a way to make more money actually we help them make money by making this decision in such a haste. and the prices surged that they could have been going up smoothly had we issued a warning some time for preparations in the increase would have been so. yes of course the way we did it was expected for everyone it is a result the world price fifty dollars while the domestic prices drop by fifty

dollars and now we have this gap. trying to find out what do people. think. about the situation. there to try to find out if the right thing by building a. market which. i think it's the right. because we should have. i don't think we should. think it is the right thing to do. first. i think it's right because of the situation with the drive over the country there is a shortage of grain. right because.

green left. they mean domestic crisis certainly not into domestic crosses will now depend on the to mass to balance that is whether or not we have in our resources to provide for both the current season and the next one currently the prices are falling because the start of season resources are considerable before january being grain deficient regions will have used up their resources in the vulgar regions in

central russia will have consumed old their grain and will have to import in the meantime south produced grain is not being sold domestically because some of the farmers are dissatisfied with the current prices are expecting kikes and thus the price formation will have to be based on the purchasing prices in the south plus the logistics costs that will have to be. if in keeping with the presidential order the government now decides to impose some of the favorable tariffs for grain haulage that this will certainly can seem price growth if not the prices will grow in any event starting from the new year motion is it necessary at all to change russia's pricing system and thus enhance competition on the grain markets. frankly speaking i do have a point of view of my own that i've rather often offer to the public in my view

it's counterproductive to freeze the prices it's populism and it later has a rather grave on the general situation and the economy as a whole. it's much more productive to fight poverty in the pockets of the people. and for these purposes the world has developed efficient tools that work well. for example the u.s. department of agriculture spends still a lion's share of its budget on food stamps that is food aid cysteine still poor. and this is an alternative to cash. in moscow we have the so-called social. good it also implies some prize discounts and so on. so we might develop and introduce a social food card and that would work much better than price containment by

containing prices we also subsidize the rich pockets. we must understand that and the rich park it's much bigger consumers than the poor ones it's automatic they have more opportunities through price containment we spend more money to support the rich pocket then the poor pocket and critic as soon as the vandalism post came up with records saying that grain were coming to the domestic market saying because traders were expecting demand to be lifted and then wish to sell at prices lower than the world price. are those who pushed through judging by what you said earlier the ground did work and everyone is toeing the line with what they perceive a different thing. that's exactly what i'm. saying i saw them regions are not so in their grain it isn't coming to the domestic market but it's not because they're

waiting for the world prices they're not happy with the current domestic prize which has dropped after the ban if prices go back to an acceptable level i mean there is no need to bring them up to the world levels this makes no sense but everybody understands what social responsibilities even a form is in southern reaches what they want is a fair price which is about six thousand rubles a tonne that's the average price for the past few years half years ago the price was nine thousand rubles a tonne clomid it in for one and a half years it stayed at the level of slowly more than three thousand roubles a tonne not long ago it went back to six thousand and began falling again as soon as it hits the six thousand mark all the sales will resume the market will move and things will go back to normal here is what prime minister putin had to say in order to calm down the situation on the domestic grain moch. in order

not to create unnecessary anxiety to ensure a stable and predictable business environment full market participants i should note that we can consider the abolition of the grain export ban only off to the next crops have been harvested and there is clarity on the grain balance zigzagging should not be allowed to. so large have skied this situation that we currently have in our hands to what extent can be beneficial for the speculators the people who don't produce anything or anybody because as the british call them the middlemen. speculators need the market to move on or was there's nothing they can do and all we could more. it is a bad place for speculators at this point in the market is that a standstill the problem hasn't been created by the speculators they have nothing

to do with it they want the market to move on the contrary so what's going on with buckwheat was everyone so excited to. buckwheat is a separate story which is that we remember all too well the shortage of black wheat in the soviet period in as soon as we hear rumors about crop failure is sort of shortage a source supply of problems people rush to buy what can be stored for long she sleeps buckwheat is among the foods that are swept off the shelves in the first place like pastor and flower but pastor and flower were stored in excess at the moment when the rumors began spreading wild mockery train service were not very large but i can say they were small either and because we had the fortune ninety thousand tons of buckwheat in storage as a forest first and last year's august first reserves in mountain to fifty seven thousand chance the difference isn't very large but because buckwheat is normally

purchased in small amounts we don't consume much bucket michelle for reserves or small to. sell slowly in retail chains in the shops but it's. my last question it's about a mover angle so as the specialist so warning about it we've been draining exports in the world grain prices went up the need prices depend on the grain price yes russia depends on the need to imports this and so need prices grow because of our own actions no i don't think so we have a special program to increase domestic production of meat as part of the national project to develop the agricultural industries so by now we can almost cover a need for poultry and we are making good progress with pork beef is the only meat where we still have some problem. but beef doesn't depend on grain. feed on grass right so here we have

a different kind of problem the walls the problem is that there is no shortage of green but there is a shortage. strong. so we expect a ten percent shortage. in each forder this year. and this will have to be replaced by grain you know of course grain is you know is more expansive. thank you thank you thank you very much for being with us and just to remind that my guest in the studio today was. the president of the russian brain and that's it for now from all of us here if you want to have your say on spotlight or have someone in mind do you think. that al gore. and the internet back with more free time comments on what's going on in and outside.