Reuters - Iran is negotiating a wheat import deal with Russia that would allow it to increase flour exports to neighboring Iraq, the secretary general of the Iran Federation of Food Industry Associations told Reuters on Saturday.

The deal would involve importing around 100,000 tonnes of Russian wheat per month for private millers who would then produce flour for export.

Kaveh Zargaran said talks were ongoing and he expected the deal to be finalised in a couple of months.

�Last week we were in Moscow to negotiate about it and after we are done we will start in a few months,� Zargaran said.

�We have a little financial problem to resolve but after it we will be able to go through with the deal,� he said without elaborating.

Iranian private millers are not allowed to use domestic wheat for flour exports.

Russia, among the world�s largest wheat exporters, has ample supplies waiting for the deal. �They are negotiating with the Iranian private sector,� Zargaran said.

Iran has exported some of its durum wheat this year from an ample domestic crop to Oman, Italy and Iraq. But Zargaran said this was not a trend that was expected to grow.

�Our policy is not really to export, though, it is for self-sufficiency,� he said.