Setting the stage for the evolution toward a free-market economy from central planning has entailed both positive and difficult adjustments in Russiathe largest former Soviet republic. Food shortages in state stores, once universal, are now sporadic. Overall food consumption has dropped-particularly consumption of livestock products, which had been maintained at artificially high levels before the reforms. These changes resulted from partial price deregulation (which eliminated shortages and shifted relative prices) and restrictive wage policy (which eroded real incomes). These trends will likely continue in 1994, if prices remain deregulated and if the level of producer subsidies does not increase substantially.