Iran buys more wheat, firms talk to Russia

TEHRAN,Feb.18(MNA)--Reuters reported that Iran bought almost half a million tons of wheat this week, traders said on Thursday, with private buyers also in talks to import further tonnage from Russia using roubles as payment, as the Islamic republic works around Western sanctions. Tehran has dramatically widened its footprint on international grain markets, having bought a total 1.1 million tons in the past two weeks, deploying non-dollar currencies with dealers also reporting talk of barter deals involving oil and gold. Iran's total purchases for February-April shipment include 420,000 tons of German origin wheat, 300,000 to 360,000 tons of Canadian origin, 240,000 tons of Brazilian origin and 200,000 tons of Australian origin wheat, the traders said. Traders declined to give price ranges for the purchases. Of the total, 600,000 tons purchased by Tehran was reported by Reuters last week. At least two giant U.S. trading houses were involved in the deals. U.S. agribusiness giant Cargill said last week it planned to continue grain shipments to Iran despite sanctions. Grain trade sources said the purchases showed Iran had succeeded in finding a way to pay for the wheat which did not involve barter transactions offering gold bullion or tanker loads of oil. "They have found a way (to pay) using credit letters," one trader said, adding that this had allowed Iran to address the line-up of ships waiting to deliver their products. "They are now paying," the trader added. Traders last week said they believed the Iranian government had used companies based in Switzerland capable of financing themselves in Asia, and used yen-based contracts to finance part of Iran's recent grain imports. Private importers are also in talks with Russian sellers over the import of grain which will bypass the banking sanctions. Sources said any deals were likely to be done in roubles avoiding European Union and U.S. currency restrictions which were covered by sanctions. "Iran is trying to use whatever means they can to get grains into the country, be it Russian or any other origin," one European trader said. "They are asking friendly suppliers to provide them with cargoes and then the suppliers will turn to the international market on their behalf. We are talking about companies in Russia and China who will obviously charge a premium."