The Russian government said Monday it will not place any restrictions on grain exports as the domestic market situation is stable, finally putting to rest concerns that the country could introduce duties to combat supply shortages caused by record export levels.

Deputy Prime Minister Viktor Zubkov said Russia will not impose any restrictions on the export of grain as the country's carryover stocks and intervention fund will be able to provide all domestic needs.

Russia's grain exports surged during the first half of the 2011-12 marketing year, with analysts saying authorities were willing to curtail exports over a set figure around 24 million-25 million metric tons, to ensure domestic supply was met.

However, Zubkov said grain exports have reached 22 million metric tons to date and could rise as high as 27 million tons by the end of the year.

Zubkov said export companies can easily enter into contracts for April, May and June, with quite high world prices likely to benefit the country's farmers.

-By Michael Haddon, Dow Jones Newswires; 4420-7842-9289; michael.haddon@dowjones.com

(END) Dow Jones Newswires

March 19, 2012 06:14 ET (10:14 GMT)