It has been confirmed in Moscow that the United States has agreed to grant Russia a six-hundred million-dollar loan in food aid to avert the risk of serious food shortages in Russia this winter.

A senior Russian official said the loan will be used to buy around one-and-half million tons of grain, milk and meat from the US.

Earlier, American officials said another one-and-half million tons of food would be donated to Russia.

They said the aid depended on Russia offering guarantees that it will be distributed fairly and will not be taxed.

The Agriculture Department in Washington says Russia's grain production this year is projected to be fifty-two million tonnes, the worst figure in fifty years.