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The unusual drought has dealt a heavy blow to Russia's agricultural sector. The country's Deputy Agriculture Minister says the losses amount to over one billion U.S. dollars.
About 11 million hectares of crops were destroyed by the drought. That's a quarter of Russia's total harvest. So far, Russian farmers have harvested about 40 million tons of grain, a 27 percent drop from the same period last year. The annual harvest will be within a range between 60 to 65 million tonnes, compared with 97 million tonnes last year.
To meet domestic demand, the world's third largest grain exporter has implemented a ban on exports of grain or grain-made products.
- Russian grain affected by fires, drought 2010-08-17