Russia will receive a free donation of 1.5m tons of wheat and a $600m loan to buy a similar quantity of corn and other foodstuffs.

American charities will provide an additional 100,000 tons of food for Russia's most vulnerable.

It is the first time in five years that Russia has accepted humanitarian aid.

Food shortages have lead to panic buying

The deal, which was agreed in Moscow, had been held up by last minute Russian objections to conditions required by the US to prevent aid ending up in the hands of corrupt officials.

American officials had insisted that the aid be exempt from Russian taxes, and that proceeds from the sale of the food - which will arrive unprocessed - be ploughed into the state pension fund.

The US is anxious to prevent any aid going astray and wants it to reach its target with as little interference as possible.

The Russians said taxation was a matter for them and that they should be free to dispose of the profits as they saw fit. They said they had already earmarked needy groups.

A suffering people

A delegation from the European Union has also had talks in Moscow on Russia's food needs. EU officials said they expected Russia to make a formal request for aid next week.

The Russian Government had originally tried to play down or even deny reports that it was seeking food aid from the West for fear of embarrassment.

But Russia's economic crisis and its worst grain harvest in 40 years have left millions of people starting the winter without enough food and fuel reserves.

The coming winter is expected to cause further hardship

Food imports have dried up since the rouble's collapse in August. The potato crop was also hit hard by disease.

Russia's icy northern provinces are particularly at risk. They rely entirely on outside food supplies during the long Arctic winter, and have received only a fraction of what they need.

The Red Cross has warned of mass starvation if the situation continues to deteriorate.

Western governments have been reluctant to lend more money to Russia, fearing it will simply be squandered or stolen.