Russia's chems, petchems producers in line for state support

29 December 2008 10:31  [Source: ICIS news]

MOSCOW (ICIS news)--Russia's major chemical and petrochemical producers are among 295 "strategic" companies elegible to receive state support, according to a government list seen by ICIS news on Monday.

Apart from Gazprom, Rosneft and Russia's other energy giants, the list also included Sibur, Kuibyshevazot, TogliattiAzot, Sayanskhimplast, Acron, Silvinit, Uralkali, Phosagro, Ufanefthekhim and Uralkhim.

Inclusion on the list would not guarantee the state support, a press-service statement said.

The government would aim to secure sustainability of "strategic" companies by a number of measures, including restructuring of back taxes, state orders, subsidised interest rates and customs tariffs, the 26 December statement said.

The appearance of Silvinit and Uralkali, leading potash producers based in Berezniki, Perm region in the Urals, on the list raised media speculation that the government aimed to merge the companies to create a major state-controlled fertilizer holding.

In addition to this, Uralkali was still facing a possible significant fine following an industrial accident at the plant. On 26 December, it "voluntarily" offered to spend up to roubles (Rb) 3bn (€74m/$103m) to tackle the consequences of the accident, including the construction of 53-kilometre bypass rail line.

($1 = €0.71, Rb28.24)

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By: Sergei Blagov
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