Russia Offers Palm Oil as Defense Offset Deals

Russia is committed to substantially increasing its purchase of Malaysian palm oil as part of defence offset deals, Oils & Fats International reported citing the Asia Palm Oil Magazine latest issue, April-June.  The country was already refurbishing the Royal Malaysian Air Force (RMAF)’s ageing fleet of 18 Sukhoi Su-30MKM Flankers, via its local partner ATSC Corp., reportedly for some RM2.2 billion (US$500 million).

Rostec State Corp. international cooperation and regional policy director Viktor Kladov told the New Straits Times in March that Russia was willing to buy Malaysian palm oil in substantial amounts to improve the countries’ bilateral trade balance, with the possibility of trade-offs for arms and defense procurement and transfer of technology and job spin-offs.  “We are aware of the palm oil ban for biofuels in Europe, and Russia is ever ready to help Malaysia by buying more palm oil.  At present, 90% of Russia’s palm oil is imported from Indonesia and we intend to change that (in Malaysia’s favour)”.