Russian Petrochemical Industry: Any Changes Coming Up?

Global petrochemical industry is among the most dynamically developing sectors. Each country uses its competitive advantages – availability of cheap raw materials, leading technologies, and access to financial resources. At the same time, the most important participants in the industry are the governments with their tools of support.

Russia with its huge resource potential, being one of the largest producers of hydrocarbons, is almost invisible on the world petrochemical map. The ‘youngest’ domestic pyrolysis plant (Tomskneftekhim) will soon mark its 25th anniversary, and mass commissioning of new projects is not planned in the near future.

In the study ‘Russian Petrochemical Industry: Any Changes Coming Up?’ VYGON Consulting experts analyzed the international experience of petrochemical industry development and studied the possibility of its application in Russia. The authors considered the peculiarities of the tax regulation of the domestic petrochemical industry, investigated the impact of the tax maneuver on the entire industry, individual producers, evaluated the investment and operational efficiency of projects for different types of raw materials.

The Study proposes the concept of a comprehensive system of industry stimulation. It covers not only petrochemicals, but also the whole chain - from extraction of raw materials to production of final products. The key principles of the concept are a balanced system of subsidies by types of raw materials and types of products, as well as taking into account the interests of all industry players.


Director, Gas & Chemicals