The FT today says Russia is playing down the danger posed by the millennium bug to its military installations.

According to the report US military analysts fear that Russia's defence system may not be Y2K compliant and warn that it may be in jeopardy. It goes on to say that the Russians have allocated £2.3m for new hardware and software but the testing period will not be complete until October.

NATO and other Western advisers have stepped up technical support to Russia in order to prevent problems.

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