Saudi Arabia's Savola Group is in talks with potential Ukranian and Russian partners for a possible investment in oilseeds crushing in Ukraine, the company's chief executive said.

'After what we have announced about sugar beet investment plans (in Egypt), we are thinking of oilseeds crushing, buying the crops from farms. We are in advanced talks to enter this industry,' Sami Baroum said at a business function in Riyadh.

Regional political tensions will not affect Savola's edible oil business in Iran, which generated close to 15 per cent of the group's net profit in 2007, Baroum said.

An agreement to merge Savola's supermarket chain Panda Al-Azizia with Saudi Giant Stores is expected to generate combined sales of SR6 billion in 2008 and improve Savola's net margin to above 1 per cent, he added.-Reuters