UpdateRussia enacts tax exemptions for petchem equipment imports

11 October 2010 14:49  [Source: ICIS news]

(Updates with comment from Sibur in last two paragraphs)

MOSCOW (ICIS)--The Russian government has enacted value-added tax (VAT) exemptions on imports of petrochemical equipment, it said on Monday.

The decision, dated 5 October and signed by Prime Minister Vladimir Putin, made a list of imported petrochemical equipment not currently manufactured in Russia tax exempt, the government said in a statement.

The list includes imports of SRT-IV-type ethane pyrolysis furnaces, propane-dehydration equipment as well as equipment for tyre production.

Russia’s VAT is currently levied at the rate of 18%.

Petrochemical producer Sibur welcomed the move, adding: "The industry quite urgently requires technological modernisation, but unfortunately domestic manufacturers of petrochemical equipment are not always able to offer modern installations, which, as a result, must be purchased abroad.

"The return on investment from such operations is directly dependent on the cost and effectiveness of new equipment and the subsequent competitiveness of Russian petrochemical products earmarked for export"

Will Beacham contributed to this article

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