FAS/Moscow increased the production forecast for milk to 30.6 MMT, butter to 0.25 MMT, and WMP to 0.04 MMT. The forecasts for cheese and SMP production are unchanged at 0.235 MMT and 0.65 MMT, respectively. Improved margins from milk sales to butter manufacturers have mitigated the negative impacts of stagnating consumer demand and uncertainty related to major changes in the distribution of subsidies. A stronger ruble encourages imports from non-banned countries, while Russia’s dairy exports to new markets are limited. Belarus remains the key supplier, despite on-going quality disputes with Russian food safety authorities. Commercial farms grow and improve yields, while household farms are shrinking.