Iran skirts western sanctions, keeps buying wheat

TEHRAN,Feb.18(MNA)--Iran bought 200,000 tons of soft wheat on the world market recently using yen-based contracts, as opposed to the dollar and euro denominated financing blocked by the sanctions. While most of the goods are coming from Australian sources, traders report that U.S. wheat could account for part of the volume, Christian Post reported. "The Iranians have just purchased about 200,000 tons of wheat from multi-national trading houses," one European trader said. "There is market talk of up to 400,000 tons." Iranian officials have also begun considering bartering in order to feed their people. "Grain deals are being paid for in gold bullion and barter deals involving oil are being offered," one trader said. "Some of the major trading houses are involved." Details on how these exchanges would work are still unclear because of how fast the situation is developing. One trader also suggested that Iran may reactivate a project for preferential supplies between Iran and Kazakhstan that would bring 2 million tons of wheat to Tehran. "One of the closest (supply) sources is Kazakhstan because the Iranians have solid links with this country but also because the two governments are centralized and deals can be made between states," said Michel Ferret, head of the markets division at French farm office FranceAgriMer.