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RTRS-IRAN HAS NOT APPROACHED MALAYSIA FOR BARTER DEALS TO SAFEGUARD PALM OIL SUPPLIES-MALAYSIA GOV'T SOURCES

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KUALA LUMPUR, Feb 10 (Reuters) - Iran has not approached Malaysia for barter deals to keep its palm oil supplies flowing as Western financial sanctions hurt it ability to pay for imported food staples, two Malaysian government sources told Reuters on Friday.

One of the sources said Malaysia is no longer keen to do barter trades after facing problems in a deal with North Korea in 2009 when $20 million worth of palm oil was to be exchanged for cash and fertiliser components.

"No matter how you do it, these countries don't have enough to barter. So Malaysia is not going to do barter trades for the time being," said the source, who had direct knowledge of the matter.

"We are more concerned if there are declines in exports in our top markets like India and China rather than Iran," the source added, declining to be identified due to the sensitivity of the issue.

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