Russia Proposes Black Sea Grain Pool

President of Russia's Grain Union Arkady Zlochevsky says that proposals to form a Black sea grain pool between Russia, Ukraine and Kazakhstan will become a reality "sooner or later, it is only the question of time."

With each country competing head-to-head for business on the global export front, they are merely contriving to drive Black Sea grain prices lower by at least USD 10/tonne, and as much as USD20/tonne, he says.

Having already teamed up with Belarus and Kazakhstan in an attempt to fast-track accession into the WTO, it seems like Russia are keen to reform strategic alliances with it's FSU neighbours.

Certainly some sort of stabilisation of Black Sea grain prices, rather than the gung-ho 'lets take whatever we can get' approach that we have at the moment should only be good news for European export hopes too.

There's not a lot of love lost between Ukraine and Russia however, who can forget last winters highly public spat over gas supplies? Blushing Ukraine is unlikely to be a willing partner in such a union, however they also have plenty of troubles of their own and may ultimately be forced into bed with their incestuous Uncles reeking of vodka.