02 October 2001 (Business Times) - PRIMARY Industries Ministry isattempting to squeeze palm oil into 20 per cent of the payment in Malaysia’s proposed purchase of between 10 and 16 Russian fighter jets.Its minister Datuk Seri Dr Lim Keng Yaik said he will make recommendationsto the Cabinet, Defence Ministry and Finance Ministry that at least 20 percent of the total value of the purchase be paid in the commodity.“I hope that part of the total contract estimated at between US$350million (US$1 = RM3.80) and US$560 million to be paid partly in palm oil,”he told Business Times in Kuala Lumpur last week.It is understood that the Government is eyeing the Sukhoi Su-30MKmulti-role long-range twin-seater fighter bomber which is priced at anestimated US$35 million a piece.The Royal Malaysian Air Force is currently evaluating two multi-rolecombat aircraft, Boeing Military and Missile Systems’ F/A-18E/F strikefighters dubbed the “Super Hornets” and the Sukhoi Su-30.The Sukhoi is expected to participate at the October 6-14 LangkawiInternational Maritime and Aerospace Exhibition.The plan was first mooted in 1997 but had to be shelved due to the Asianregional currency crisis and talks of the deal being revived resurfacedlast month.This is the second arms deal which is believed to cost at least US$35million each.Malaysia had bought 18 MiG-29 Fulcrum fighter jets in 1994 for a total ofUS$600 billion (then RM1.56 billion) under an offset programme which took24 months to negotiate.It involved a cash payment of US$450 million of which, US$95 million wasin palm oil and palm oil products and supply of other Malaysian productsworth US$55 million.The palm oil was to be delivered to Russia over a period of five years,which incidentally ends this year.Malaysia, as part of its efforts to promote the commodity, has enteredinto several billion-ringgit counter trade arrangements with severalcountries notably India, China and the US which include palm oil fordouble-tracking works and locomotives.It is also understood that negotiations were to have been carried out inRussia last month during an agreement to extend Russia a US$50 millioncredit to buy about 200,000 tonnes of Malaysian palm oil.The two countries were to have formalised the pact during a visit by PrimeMinister Datuk Seri Dr Mahathir Mohamad to Russia but the trip wascancelled following the terrorist attacks in the US on September 11.“We hope to conclude the counter-trade as soon as possible and Malaysiahas already invited Russia to come which may take place some time nextyear,” Dr Lim said.Malaysia was exporting 350,000 tonnes to 400,000 tonnes of palm oil a yearto the former Soviet Union before its collapse, of which 80 per cent wasconsumed by Russia. Since 1993, Russia has been buying 40,000 tonnes to60,000 tonnes a year.