IPOH, July 6 (Bernama) -- The Primary Industries Ministry hopes to sign anagreement on palm oil exports during Russian President Vladimir Putin'svisit to Malaysia on Tuesday.

Primary Industries Minister Datuk Seri Dr Lim Keng Yaik said Malaysia hadmade available RM190 million in palm oil credit payment arrangement(POCPA) for Russia to buy palm oil.

He said the two countries had negotiated the matter and hoped to sign theagreement during the visit.

"If I am not mistaken there will also be a discussion on Malaysia'sintention to buy Russian jets, Sukhoi Su/30MKM, and I believe this willbring effect to the counter-trade of palm oil," he told reporters afteropening the Perak Gerakan general meeting here Sunday.

Dr Lim, who is Gerakan president, said Malaysia's intention to buy Sukhoifighter jets would open a new market for Malaysia to export its productsto Russia. "Actually, Russia was very important for us before 1990 whereRussia's import of palm oil was about 400,000 tonnes per year. However,after the breakup of the Soviet Union, the sales of palm oil have gonedown below 60,000 tonnes," he said.

He said that on Thursday Prime Minister Datuk Seri Dr Mahathir Mohamadwould be visiting Ukraine and the ministry had also made available RM38million in POCPA for Ukraine.

"In the last two years since the price of palm oil went very low startingJanuary 2001, we have instituted different actions to strengthen ourmarket position and increase palm oil price, especially in the consumingcountries.

"The first thing is to increase availability of POCPA to countries whichneed credit to buy Malaysian palm oil. With this we are able to exportmore palm oil. Second is through counter-trading. We will continue withthis effort to promote our palm oil," he said.

--