QRMR Jan 2001

QUARTERLY RUSSIAN
PETROCHEMICAL INDUSTRY REPORT

EUROPE
October 2000
Issue No.14
HIGHLIGHTS
In H1 2000 Russia has seen strong growth in the petrochemical sector at 118.8% compared to the same period last year. Growth has
Front also been strong in other associated sectors relative to 1999. The
Chemical and Petrochemical industries accounted for 6.5% of total
Russian production output in H1. However, production levels genIndividual Petrochemicals
3
Foreign trade of chemical
erally decreased from Q1 to Q2.
complexes
7
Inflation is in check, but is still above government target levels. The
Company profiles
8
high price of crude is not helping this situation and it is feared that a
fuel crisis may emerge as a consequence.
The 2001 Budget has been submitted to the Duma for a first reading.
Here, the government is at odds with the federal assembly over exAPPENDICES
port oil prices. The Duma believes that these are quoted at too low a
level.
Petrochemical profiles
12
Import Volumes
18
In terms of exports, Russia is currently benefiting from the global
Export Volumes
19
increase in oil prices and the weakened rouble. During H1, synthetic
Company profile tables
20
resin and plastic exports were up by 134.4% on last year. Russia has
also been exporting oil vigorously
Experts feel however that this is sacrificing long term growth in favour
Consulting Centre "IRBIS" of short term capital gain. This may well prove to be detrimental to
Office 313
the industry, where many feel competitive restructuring is needed.
22, Marksistskaya Ul,
CONTENTS
Page
General Economic and

political situation
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General Economic and Political Situation

The tragic loss of the atomic submarine Kursk and its crew,
has been the latest tragedy to impact on Russia. This international
incident is proving to be a heavy burden for the country and its
people. Another newsworthy event has been the fire at the
Ostankino TV tower. This has resulted in severe disruption to
the TV network in the Moscow area. Russia continues to fight in
Chechnya, where federal troops repel guerrilla onslaughts of
separatists and foreign mercenaries.
Today the economic situation in the country is stable and growth
can be seen in all parts of the economy. The budget is
administered with budget surplus and taxes are collected
according to plan.
The rouble: US $ ratio is steady and today it is US$1 = R 27.8.
Domestic inflation is outstripping the government target levels.
To some degree this has negated the previous policies of
increased pensions and wages for some employees.
The high price of crude has made a significant impact on Russias
economy. The price of Brent reached the level of US$ 35 for
supply into Russia on a delivered basis. This brings a
considerable advantage to exporters but it has resulted in the
development of a fuel crisis within Russia.
This report is for the exclusive use of the client company. Distribution outside of the client company is strictly
prohibited without the prior written consent of Chemical Market Associates, Inc. (CMAI) & CC_IRBIS.
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QUARTERLY RUSSIAN PETROCHEMICAL REVIEW

In Moscow 1 litre of gasoline costs
approximately US$ 0.25-0.30 while in
Europe it is around US$1. The world
prices for crude oil effectively double
those in the domestic market. Given such
difference in prices, it has become
profitable for large companies to increase
their exports of crude oil as much as
that the last ten years of budget estimates

were submitted with budget surplus.
There are two possible problems
associated with the current budget.
Firstly: The Duma believes that in the
budget, the proposed export price for
crude oil has been underestimated and
adopted at US$ 21-22 while today it is 1.51.6 times higher. In the opinion of the
Duma experts, the assumed inflation
Russian Economic Indicators,
level has been reduced too, at only
12% per year. According to Duma
Q1 2000
estimates, the assumed incomes are
INDICATOR
H1 2000 vs H1 1999 %
underestimated by R 150 bn (US$ 5
bn as minimum at the average
annual ratio of US$1=R 30 in 2001).
GDP
1 08 .4
The Duma insists on accounting for
Ind u stria l P rod u ctio n
1 10 .3
this income as part of the budget,
A g ricu ltu ral P ro du c tio n
1 00 .8
and it would like to exercise control
C ap ital In v estm e nts
1 14 .3
of the requisite sum. However, the
E x po rts
1 49 .5
government is standing firm for two
Im po rts
1 05 .6
reasons. Firstly, world economies
C o ns um e r P ric e In d ex
1 09 .5
are under strain because of the high
Ind u stria l P rice In de x
1 17 .0
price of crude and these high prices
are unlikely to hold out for a year
possible. Today the
and a half. Secondly, the government
price of Russian crude is around US$ 200 would like to have any surplus capital to
per 1t. We feel the existing duty, at US$ settle foreign debts. It is worth noting that
23, is too low and that economic barriers the governments position is supported by
consistent with the current situation must Russias Central Bank.
be applied by the government.
There is currently a shortage of
gasoline and prices are
Russian Industrial Performance
increasing. Under current
growth conditions in the global
oil industry, some experts have
Sector
H1 2000 vs H1 1999 %
expressed the opinion that
101.6
Russia is ignoring much needed Power
104.8
Fuel
industrial restructuring in
122.7
Ferrous Metals
favour of the short term gains Non Ferrous Metals
115.0
that can be made by exporting Chemicals & Petrochemicals
118.8
crude.
115.3
Engineering
117.1
Wood,
Pulp
&
Paper
Today the government and the
111.0
Construction
Materials
Federal Assembly cannot agree
135.2
Light
Industry
on the 2001 budget which has
112.4
Food Industry
been submitted to the Duma.
68.3
Microbiological Industry
The first reading is likely to be Medical
119.4
in early October. It is significant Printing
126.7
October, 2000 / Issue No. 14
Page 1

British Prime-Minister Tony
Blair. Both parties would like to
revive Russian-British economic
relations. Mr Kasyanov assured
H1 2000 vs H1 1999
Sector
Mr Blair that liberal reform will
%
continue in Russia and invited
123.1
Ammonia
Mr Blair to visit Moscow. Mr
123.7
Caustic Soda
Kasyanov informed members of
143.4
Dyes
the
British
Industry
110.5
Fertilisers
Confederation
that
Russia
does
149.9
Fibres
not
foresee
any
sharp
changes
to
149.0
Methanol
the law currently aggravating the
120.0
Paints
investment climate. During his
119.8
Resins & Plastics
visit, Mr Kasyanov presented a
109.0
Soda Ash
122.4
list of 30 possible Russian-British
Sulphuric Acid
115.5
Synthetic Rubber
investment projects to the tune of
118.6
Fungicides
approximately US$ 1.7 bn. These
105.7
Tyres
projects cover aviation, space,
coal, petrochemical industries,
ship-building
and the production of oil
Secondly: Many governors of regions members of the Federation Council, do not and gas equipment. Russian experts
agree with the budget estimates. In order remain optimistic about the outcome of his
visit.
to implement the aim
Chemical Industry Performance
of strengthening and
Onaco
rationalising the whole
economy,
great
Oil production, m t
7.9
centralisation
of
Oil refining, m t
4.0
financial income is
included into the
budget
estimates.
Previously, budget allocation was divided
approximately
equally
whereas, today a greater part
Petrochemical
of the budget is being
centralised. If this occurs PRODUCT
KT
Moscow stands to lose US$ 1.7
937.0
Ethylene
bn. in its allocation for 2001
423.2
Propylene
under the current plans.
442.4
Benzene
Instead, we feel that the federal
164.0
Styrene
459.7
Polyethylene
government must undertake
103.8
Polypropylene
to make social payments at a
41.8
Polystyrene
regional level.
243.7
PVC
Among other important
events has been the visit of
Russian
Premier
Mr
M.Kasyanov to London and
his subsequent talks with
Orthoxylene
Paraxylene
Phenol
Acetone
Isoprene
Synthetic Rubber
Butadiene
Page 2
139.9
146.3
71.9
48.4
135.4
408.3
145.2
TOC
19.6
11.1
Production
H1 2000 vs H1 1999
118
117
126
145
112
110
142
124
155
2.6
1
138
115
116
132.4

production
rates
the 1999
mosttoimportant
In September this year, 85% of the shares increased
from
12%for
in H1
14.2% in
areas in chemical
in the state owned oil company Onaco January-June
2000. production. These are
(Orenburg Oil Company) were purchased indicative of substantial increases that can
at auction by EuroTEC Co., a subsidiary be found in many other product areas, not
of the Tyumen Oil Company (TOC). No only compared with H1 but also H2 of the
merger of the two companies is expected past year too.
at this stage. In order to realise the size of
the new business an outline of production Ethylene
for the two companies is shown on the
previous page it is based on their In Q2 2000 ethylene production fell by
activities in 1999.
16% compared to Q1. Reduced
production was evident at many
MAIN PERFORMANCE INDEXES OF companies with the exception of JSC
RUSSIAS
CHEMICAL
AND Tomsk Petrochemical Combine, JSC
PETROCHEMICAL COMPLEXES IN H1 Interkhimprom-Oxosyntez, Perm and
2000
General
In H1 2000, the
production activities of
the
chemical
and
petrochemical industries
were categorised by the
continuation of positive
trends observed in 1999
and by high growth rates
which exceeded industry
expectations. This is
evident in the previous
table The above figures
show
increased
ETHYLENE PRODUCTION
(KT)
600
500
400
300
200
100
0
3Q97 4Q97 1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00
200
JSC
Angarsk
Petrochemical
Company. However,
these three companies
could not make up the
full production deficit.
150
Propylene
PROPYLENE PRODUCTION
(kt)
250
100
50
0
3Q97 4Q97 1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00
Page 3
In Q2 2000 the level of

propylene production
also decreased by 10%
compared with Q1.
Significant production
decreases occurred at

STYRENE PRODUCTION
(kt)
100
90
80
70
60
50
40
30
20
10
0
3Q97 4Q97 1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00
Kazanorgsyntez, Stavropolpolymer,
Ufaorgsyntez and the Moscow Refinery.
In H1 2000 reduced production took place
only in Ufa and Moscow compared with
H1 1999.
Work was undertaken at Tomsk
Petrochemical Combine and JSC SiburNeftekhim with a view to improving the
supply of feedstock to ethylene crackers.
Previously, a similar positive change
took place regards the supply of
feedstock at JSC Stavropolpolymer.
Styrene
Thermoplastics.
A
continuing
trend
towards
increased
production of synthetic
resins and plastics was
evident in H1 2000. The
growth rates of basic
polymers accounted for
about 70% of the total
output of polymer
materials
which
amounted to 115% for
the first 6 months of the
current year. This is
comparable to the same
period in 1999.
Polyethylene
In H1 2000 polyethylene production
increased by 12.3% compared with H1
1999. Production growth was observed at
almost all companies, particularly JSC
Tomsk Petrochemical Combine who
consolidated their position in the global
marketplace.
As
before,
JSC
Kazanorgsyntez continues to occupy the
top spot in terms of production. It should
be noted that Q2 this year saw a reduction
in HDPE production - mainly at JSC
Stavrolen (Stavropolpolymer) and, to a
lesser degree, JSC Kazanorgsyntez.
Styrene production in Q2 2000 declined

by 19% compared to
Q1. With some small
POLYETHYLENE PRODUCTION
reduction,
JSC
(kt)
Nizhnekamskneftekhim
continues to operate 300
steadily while Angarsk
250
Petrochemical
Company
didnt 200
produce any styrene in
Q2.
JSC 150
InterkhimpromOxosyntez, increased 100
their production rates.
50
Major Thernoplastics
0
3Q97 4Q97 1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00
Page 4

Polystyrene in Omsk,
production remained
very low at 14% of
capacity.
POLYPROPYLENE PRODUCTION
(kt)
70
60
PVC
50
40
30
20
10
0
3Q97 4Q97 1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00
Polypropylene
JSC Polypropylene,
Ufa firmly holds on to
the
lead
in
polypropylene
production.
They
currently account for
45% of Russian output
of this polymer. As a
whole, in Q2 2000
polypropylene
production dropped by
20% compared to Q1
this year.
Unlike other thermoplastics, cable plasticate

production in Q2 2000
increased
by
9%
compared with Q1 this
year. In Q2, production
increases
were
observed
at
JSC
Kaprolaktam,
POLYSTYRENE PRODUCTION
(kt)
25
20
15
10
0
1Q98
2Q98
3Q98
4Q98
1Q99
2Q99
3Q99
4Q99
1Q00
4Q99
1Q00
2Q00
Polystyrene
Polystyrene production
was smooth without
reduced production in
Q2. In H1 2000 the
largest supplier was
JSC Salavatnefteo
rgsyntez.They
increased production
by 32% compared to the
same period in 1999.
The operating rate at
other
companies
remained low. At JSC
PVC PRODUCTION
(kt)
140
120
100
80
60
40
20
0
1Q98
2Q98
3Q98
Page 5
4Q98
1Q99
2Q99
3Q99
2Q00

Dzerzhinsk (14%), JSC
Kaustik, Sterlitamak
(1%), JSC Plastcard,
Volgograd (25%) and
at
JSC Sayanskkhimprom (20%). The
output of PVC plastic is
being
successfully
increased, two times
more than the half
yearly output of 1999.
Growth
in
Q2
outstripped that of Q1
this year.
PETROLEUM BENZENE PRODUCTION

(kt)
300
250
200
150
100
50
0
3Q97 4Q97 1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00
Benzene
Benzene production. Benzene production
in H1 2000 increased compared with H1
1999. However, there was a decrease of
15% from Q1 to Q2 this year. A great
quarterly decline took place at JSC
Nizhnekamskneftekhim (21%) and JSC
Ufaneftekhim (46%) with 5% reduction
in the quarterly production of coke
benzene. As a whole, a total growth in
production in H1 2000 by almost 26%
seems quite successful compared with H1
1999.
Ortho & Paraxylene
Growth in production of other aromatic

hydrocarbons - ortho- and para-xylenes is
evident too, with all companies
progressing steadily.
Phenol & Acetone
Production of phenol and acetone
increased by 31% and 38%, respectively in
H1 2000 compared with H1 1999.
However, in Q2 phenol production
declined by 19% and that of acetone by
28% compared with Q1 this year. Of all
companies only JSC Nitron, Saratov did
not reduce the production of these
products.
Synthetic Rubber and
associated Monomers
ORTHOXYLENE
(kt)
90
80
70
60
50
40
30
20
10
0
1Q98
2Q98
3Q98
4Q98
1Q99
2Q99
3Q99
Page 6
4Q99
1Q00
2Q00
In H1 2000 there were

two factors contributing
to the lack of growth in
this sector compared to
the corresponding time
last year. Growth in the
associated tyre industry
was overshadowed by
an increase in exports
of synthetic rubber.
Production of synthetic
rubber declined by 3.3%

Tyre Production
PARAXYLENE
(kt)
120
100
80
60
40
20
0
1Q98
2Q98
3Q98
4Q98
1Q99
2Q99
3Q99
in Q2 compared with Q1 this year. This is

linked to some reduced production of
butadiene and butyl rubber in Q2. As a
whole, January-June 2000 saw growth in
production of all the important synthetic
rubber types compared with H1 1999.
Production of isoprene rubber increased
by 28%, styrene-butadiene by 11.5%,
butadiene-acrylonitrile by 70%, butyl
rubber by 3.9%. In H1 2000 the capacity of
the domestic market was almost 250,000
tonnes more than the previous year. This
is 16% higher than 1999 and growth in
exports were increased by 1.1%. The share
of imported synthetic rubber in Russias
domestic market is small at around 5%. As
a whole, the rubber market in Russia is
stable but the capacity of the
polybutadiene market has contracted as a
consequence of a reduced supply of
butadiene to the Yefremov Plant. Though
growth was evident in H1 2000, the lack of
available monomer will limit sustained
growth in production of synthetic rubber.
Monomer production methods are
outdated and the final products are
extremely expensive. A radical review of
this sector is needed.
An increase in tyre
production in H1 2000
can be attributed to
growth
in
the
engineering
sector
(15.3%). This includes
automotive industry
growth of 2.5% and
tractor and agricultural
engineering by 1.7%. In
this case, in H1 2000
compared with the
4Q99 1Q00 2Q00
corresponding period
in 1999 the output of
truck tyres went up by 18.3%, agricultural
tyres by 29% and motorcycle tyres by
10.5% while the production volume of
passenger car tyres declined by 1.7%. As
a result, H1 2000 saw a change in the
structure of tyre production - the share of
truck tyres in production volume
increased by 3.3% up to 33%, and the share
of passenger car tyres declined by 4.5% to
58.6%. The changes in shares of
agricultural and motorcycle tyres were
insignificant.
In H1 2000 the capacity of domestic market increased by 12% and here the share
of imported tyres went up by 2.6% with
14.3% increase of its share. The share in
exports of tyres vs their production volume also increased from 12% in H1 1999
to 14.2% in January-June 2000.
FOREIGN TRADE OF CHEMICAL
COMPLEXES IN H1 2000
H1 2000 saw a 26.9% increase in foreign
trade turnover of chemicals. The cost of
export went up by 31% and that of
imported material increased by 18.8%.
Page 7

Moscow. It is a
large industrial
and transport cenUS$ mln
%
3610.2
100
tre located near the
2476.8
68.6
Trans-Siberian
2194.3
Railway. The city
282.5
has a large river
1133.4
31.4
port
on
the
969.3
confluence
of
two
164.1
big rivers, the
1343.4
Volga and Oka,
1225
which are con118
nected by navigation canals to five seas. Regional petrochemical and chemical companies are located at Kstovo and Dzerzhinsk.
Structure of Foreign Trade Turnover in RF Chemical Industry H1 2000

Index
Foreign trade turnover, total including:
Export
-Extra CIS
CIS
Import
-Extra CIS
CIS
Balance
-Extra CIS
CIS
Export
The table on page18/19 can be viewed as

a basis for the export of major chemical
product groups. In H1 2000 they
accounted for 65% of the cost of all
exported chemicals/plastics, of which
mineral fertilisers accounted for 32%,
synthetic resins and plastics 9% and
ammonia and rubber - by 6% each.
Import
The table on page 18/19 can be viewed
as a basis for the export of major chemical
product groups. In H1 2000 they
accounted for 65% of the cost of all
exported chemicals/plastics, of which
mineral fertilisers accounted for 32%,
synthetic resins and plastics 9% and
ammonia and rubber - by 6% each.
COMPANY PROFILES
This issue highlights the refineries and
chemical
companies
of
the
Nizhegorodskaya region. This region is of
primary importance to the Russian
petrochemical and chemical industries.
The Nizhegorodskaya region is located
North-East of Moscow. The capital is
Nizhni Novgorod (population about 1.5
million) and is at a distance of 420 km from
Page 8
Company Profile - Norsi-Oil (Kstovo)

Norsi-Oil incorporates the refinery JSC
Norsi and the sales network for retail trade
in oil products. Unfortunately, JSC Norsi
has no crude oil extraction companies
within its portfolio and thus, normal
operations are sometimes affected.
Founded in 1995 and having no access to
virgin crude oil, Norsi-Oil could not
maintain its own refinery JSC Norsi at full
capacity due to crude shortages. The
refinery Norsi located at Kstovo (30 km
from Nizhni Novgorod) is one of the
largest plants at Russias centre. The
refinery can process 15-17 million tonnes
of crude oil per year producing all the
associated oil based products, namely
fuels and lube oils. The refinery boasts an
ethylene cracker with a capacity of 280
thousand Mt per year. The refinery was
built in 1962 and the ethylene cracker - in
1981. Currently, the ethylene cracker is
incorporated into the structure of JSC
Neftekhim (see below). The oil company
Norsi-Oil provides JSC Norsi with crude
oil. Norsi-Oil is supplied principally by
Lukoil and Tatneft.
However, due to various reasons oil
supplies are insufficient and at times
irregular. The main reason for this is the

boom in exports of crude oil from Russia.
Oil producing companies currently prefer
to export, even though this is to the
detriment of the domestic market. They
obtain more significant profits this way
because of the discrepancy of prices in the
world market vs the Russian domestic
market. In 1999 the refinery Norsi
processed 4.2 million tonnes of crude oil,
significantly less than in previous years.
The output of oil products reached 2
million tonnes (mln t), of which motor
gasoline accounted for 0.61 mln t, kerosene
- 0.25 mln t, diesel fuel - 1.04 mln t and
naphtha for the chemical industry - 0.1 mln
t. The output of fuel oil and furnace fuel
amounted to 1.5 mln t. Also, 230 thousand
tonnes (thou. t) of lube oils were produced,
including motor oils - 100 thou. t and also
bitumen - 350 thou. t, as well as paraffins
etc.
During H1 2000 the refinery processed 2
mln t of oil and associated oil products in
the same vein as 1999. The products of the
company have a viable export market
especially regards diesel fuel, fuel oil and
basic lube oils.
The refinery Norsi needs upgrading and
first and foremost this must include the
construction of a deep oil processing unit
with the capacity for fuel oil in the region
at 1.5-2 mln t/year. The administration of
the Nizhegorodskaya region supports the
Norsi-Oil company with regards to this
matter.
Company Profile - JSC Sibur-Neftekhim
Initially the company JSC Neftekhim was
founded by JSC Norsi and JSC
Kaprolaktam, Dzerzhinsk, with the
transfer of JSC Norsi units located in
Kstovo such as the ethylene cracker and
ethylene pipeline Kstovo-Dzerzhinsk
(about 60 km). JSC Kaprolaktam use this
feedstock to produce ethylene oxide and
to produce glycol at its unit located in
Dzerzhinsk. This newly established
company is of key importance for the

whole petrochemical complex in the
Nizhegorodskaya region. Late in 1999 JSC
Neftekhim and JSC Sibur (a
subsidiary of Gazprom) established JSC
Sibur-Neftekhim on the base of JSC
Neftekhim. As a result, 52% of shares
from Sibur-Neftekhim are in JSC Sibur.
This fact is disputed by Lukoil, who also
claim a stake in the ethylene cracker in
exchange for its crude oil which keeps
Norsi running at full capacity. Up until
now the company is under Sibur
ownership, but a final decision will be
made at forthcoming talks between
Gazprom and Lukoil.
Until recently, the companys operations
have been disrupted by delays in the
supply of ethylene. This is linked to
irregular naphtha supplies from JSC
Norsi. Today however, JSC SiburNeftekhim is provided with feedstock
from the JSC Gaschemical Company
which is connected with Sibur. JSC
Gaschemical Company started
providing the ethylene cracker with gas
condensate and gas gasoline, which
reduced the crackers dependence on
naphtha from Norsi. It is hoped that the
ethylene cracker will operate without
disruption up until the end of 2000.
As is evident from the data shown in the
table on page 12, in Q1 2000 the ethylene
output amounted to almost 45% of the
annual 1999 volume, which indicates that
the ethylene cracker was better served.
By the results of 1999, the greatest share
of the output falls on propylene - 15.6% of
the total cost value of commercial
products, and ethylene glycol - 54.2%. The
company JSC Sibur-Neftekhim is active
in foreign markets. In 1999 ethylene glycol
was supplied to Finland, Hungary,
Poland, Latvia and the CIS. Ethylene oxide
was supplied to Poland, Romania and the
Ukraine.
The number of staff at the company is 2000,
and the depreciation of capital assets
Page 9

averages 40-45%.
JSC Sibur-Neftekhim in turn provides
ethylene and ethylene oxide to other
companies in the region, for instance, JSC
Kaprolaktam, Dzerzhinsk.
Company Profile - JSC Kaprolaktam
This company is located in Dzerzhinsk. It
falls in the category of large companies
and occupies a substantial share in the
Russian wide production of PVC, chlorine
and caustic soda. The main feedstock
ethylene, is received by pipeline from
Kstovo but ethylene oxide and
monoethylene glycol are obtained on site.
All these raw material resources are
supplied by JSC Sibur-Neftekhim.
The company has not been commercially
viable of late, and as a consequence of the
difficult financial situation here since 1998
a trustee in bankruptcy has been called in
and this situation still remains in place
today. In 1999 the number of employees
was 7550. Along with domestic market the
companys products find a niche in foreign
markets.
On the tableon page 12 it shows the main
production of the main chemiclas in 1999
compared with Q 2000. Although in 1999
the following materials were exported; 400
t of chlorine (CIS), 12.5 thou. t of caustic
soda (CIS and Baltic States), 4.3 thou. t of
alcohols (Germany), 7.4 thou. t of ethylene
chloride (Poland, Slovakia), 4.5 thou. t of
PVC (China, Italy, Egypt, CIS) among other
products. The exports of 1999 increased by
50% in terms of value when compared to
1998. In 1999 the company imported for
its own needs mercuric sulphates and lead
sulphates (Netherlands), palmitic acid
(Netherlands), plasticisers (Latvia) and
other products. The state has a 24% share
in companys authorised capital.
The Companys equipment is in need of
upgrading. There are a number of projects
that need the same treatment. These
include the production of chlorine and
Page 10
caustic, sytanols and PVC. These projects

are at present too poorly financed to
implement these upgrades.
Company Profile - JSC Syntez
The company is located in Dzerzhinsk and
it falls into the category of middle-size
companies. The number of employees is
3500. As a whole, in 1999 the production
volume increased by 35% relative to
1998(figures shown in a table on page 12).
The companys products are consumed on
a pan Russian scale.
The main regions of export are the CIS and
Baltic countries. In 1999, 500 t of hydrogen
peroxide, 260 t of acetone, 645 t of aniline
and 130 t of ethanol amines were exported
to these regions. In 1999 the company
exported
lead-based
antiknock
compounds to European countries such as
France (1.2 thou. t), Germany (1.6 thou. t)
and Italy (1.6 thou. t). Also to Iran, in the
Middle East (0.6 thou. t)
The company imports bromides for its use
(Ukraine - 3.2 thou. t). There is no state
share in the companys authorised capital.
As a whole, the company is considered to
be financially stable. In 2000 the following
projects are being implemented:
- The upgrading of amine complex;
- A unit to process waste associated with
the production of lead tetraethyl;
- The establishing of household chemical
production for retail sale.
Company Profile - JSC Orgsteklo
The company is located in Dzerzhinsk and
falls in the category of large companies,
the number of employees is 5,070.
JSC Orgsteklo is the largest producer of
acrylic products in Russia. In the field of
polymethyl methacrylate (PMMA) the
company enjoys a 99% market share in
Russia.
Fifty percent of the companys outputs are
consumed in Russia and approximately

15-20% are exported to the following
regions; Methyl methacrylate 2.5 thou. t
(Finland, Bulgaria, Hungary, Czechia),
aluminium sulfate 10 thou. t (Turkey,
Vietnam), acrylic polymers 1 thou. t
(Ukraine), aniline 100 t (Slovakia).
For its own needs, the company imports
some types of reagent not produced in
Russia - or those that are produced in
limited quantities. The major suppliers are
Germany, Czech Republic, Switzerland
and Latvia. In 1999 France supplied 1000 t
of polyethylene films for the companys
needs.
As a whole, the company is considered
stable. The state has a 60% share in
companys authorised capital. There are a
number of projects in various stages of
development. These are as follows;
- The production of sodium cyanide;
- The upgrading of acetone production;
- The organisation of fungicide production.
Page 11
Basic Petrochemicals production, H1 2000
ETHYLENE
Company
JSC Angarsk Petrochemicals, Angarsk
JSC Kazanorgsyntez, Kazan
JSC Nizhnekamskneftekhim, Nizhnekamsk
JSC Norsi, Kstovo
JSC Salavatnefteorgsyntez, Salavat
JSC Samara Synthetic Alcohol
JSC Stavropolpolymer, Buddenovsk
JSC Tomsk Petrochemicals
JSC Neftekhimik, Perm
JSC Ufaorgsyntez
TOTAL
Production
kt.
95
172
209
68
127
23
124
44
11
65
937
H1 2000 vs H1 1999 Share of Total

%
%
116
10
107
18
106
22
190
7
124
14
148
2
111
13
220
5
1
96
7
118
100
PROPYLENE
Company
Production
JSC Angarsk Petrochemicals, Angarsk
kt.
46
%
115
%
11
Central Fuel Company, Moscow Refinery

JSC Kazanorgsyntez
39
11
99
123
9
3

JSC Norsi, Kstovo
98
31
106
180
23
7

JSC Samara Synthetic Alcohol
62
7
124
210
15
2
JSC Stavropolpolymer, Buddenovsk

JSC Tomsk Petrochemicals
57
20
210
230
13
5
JSC Ufaorgsyntez
JSC Omsk Kauchuk
45
3
96
11
1
JSC Interkhimpron-oxosyntez-Perm
TOTAL
4
423
Page 12
124
1
100

BENZENE
Company
Production
kt.
JSC Kirishinefteorgsyntez,kirishi
10
JSCUralorgsintez, Chaikovsky
23
80
108
18
JSC Norsi, Kstovo
18
290
JSC Omsknefteorgsyntez, Omsk
70
106
16
JSC Ryazan Refinery
21
136
53
106
12
JSC Ufaneftekhim, Ufa
41
97
JSC Angarsk Petrochemical
31
Coke Oven Benzene
94
99
21
TOTAL
442
126
100
LOW DENSITY POLYETHYLENE

Company
Production
kt
JSC Tomsk Petrochemical Combine
39
230
17
JSC Ufaorgsyntez
42
93
18
JSC Angarsk Plant of Polymers
40
112
17
JSC Salanatnefteorgsyntez
23
98
10
JSC Kazanorgsyntez
86
103
37
TOTAL
231
112
100
HIGH DENSITY POLYETHYLENE

Company
Production
kt.
JSC Kazanorgsyntez
101
107
46
JSC Stavropolpolymer
119
118
54
TOTAL
220
113
100
Page 13
PVC
Company
Production
kt.
JSC Azot, Novomoskovsk
10
119
JSC Kaprolaktam, Derzhinsk
16
136
JSC Kaustik, Sterlitamak
70
141
29
JSC Khimprom,Volgograd
13
127
JSC Plastkard, Volgograd
35
113
14
JSC Sayanskkhimplast, Zima
89
117
36
JSC Usolyekhimprom, Usolye-Sibirskoye*
11
109
TOTAL
244
124
100
STYRENE
Company
Production
kt.
JSC Angarsk Petrochemical Company
19
JSC Neftekhimik, Perm
14
JSC Salavatnefteorgsyntez

%
%
11
8
3
126
113
77
TOTAL
164
117
100
POLYSTYRENE
Company
Production
kt.
JSC Plastik, Uzlovaya
96
18
24
132
57
Other
156
JSC Polistirol, Omsk
16
TOTAL
42
142
100
Page 14
POLYPROPYLENE
Company
Production
kt.
JSC Tomsk Petrochemicals Group, Tomsk
21
177
20
JSC Polypropylene, Ufa
46
100
45
Central Fuel Company, Moscow Refinery
36
99
35
TOTAL
104
110
100
ORTHOXYLENE
Company
Production
kt.
JSC Kinef, Kirishi
51
260
37
56
132
40
32
116
23
TOTAL
140
155
100
PARAXYLENE
Company
Production
kt.
JSC Kinef, Kirishi
46
32
64
44
36
24
TOTAL
146
260
100
PHENOL
Company
Production
kt.
JSC Ufaorgsyntez, Ufa
33.1
159.1
46
JSC Nitron, Saratov
19.7
200
27
JSC Kazanorgsyntez
19.1
150
27
72
1.31
100
TOTAL
Page 15
ACETONE
Company
Production
kt.
21
101
43
JSC Nitron, Saratov
12.7
200
26
JSC Dzerzhinsk,
2.5
JSC Kazanorgsyntez
12.2
150.6
25
48
137.8
100
JSC Ufaorgsyntez, Ufa
TOTAL
ISOPRENE
Company
Production
kt.
JSC Kauchuk, Sterlitamak
41
111
30
JSC Nizhekamskneftekhim, Nizhnekamsk
71
117
52
JSC Sintezkauchuk, Toliatti
24
118
17
TOTAL
135
115
100
SYNTHETIC RUBBER
Company
Production
kt.
JSC Kauchuk, Sterlitamak
101
117
25
JSC Nizhekamskneftekhim, Nizhnekamsk
99
119
24
JSC Sintezkauchuk, Toliatti
67
119
16
JSC Voronezhsyntezkauchuk
79
96
19
JSC SK Premier
91
JSC Sterlitamak Petrochemical Plant
121
JSC Yefremov, Tula
26
135
JSC kazan, Tatarstan
100
JSC Krasnoyarsk
175
JSC Omsk Kauchuk
13
178
JSC Ufaorgsyntez
92
408
116
100
TOTAL
Page 16
PVC FOR CABLE INSULATION

Company
Production
kt.
JSC Vladimir Chemical Plant
181
21
JSC Kaprolaktam, Dzerzhinsk
190
24
Other
180
18
JSC Kaustik, Sterlitamark
755
17
JSC Khimprom, Kemerovo
545
JSC khimplast, Novosibirsk
131
Plant of Artifcial Leatheeer, Nalchik
192
10
TOTAL
22
206
100
TYRES
Company
Production
mill.
JSC Barnaul Tyre Plant, Altai Territory
881
116
JSC Voltair, Volzhsky, Volograd Region
1050
90
JSC Voronezhshina, Voronezh
637
88
JSC Kirov Tyre Plant, Kirov
909
103
JSC Krasnoyarsk Tyre Plant, Krasnoyarsk
135
67
JSC Petroshina, St Petersburg
97
88
JSC Moscow Tyre Plant, Moscow
1074
126
JSC Nizhnekamskshina, Tatarstan
3851
93
27
JSC Omskshina Omsk
1520
153
11
Ural Tyre Plant, Yekaterinburg
378
70
JSC Yaroslavl Tyre Plant, Yaroslavl
3078
118
22
JSC Matador-Omskshina, Omsk
479
134
14088
106
100
TOTAL
Page 17
Import Volumes of Basic Commodities
Products
Mineral Fertilizers
Amonia
Caprolactam
Methanol
Soda Ash
Caustic Soda
Synthetic resins & Plastics
Of which
Polyethylene
Polypropylene
PVC and Copolymers
Monoethylene Glycol
Chemical Fibres and yarns
Synthetic Rubber
Tyres
1000 tonnes
3230
1517
85
402
169
39
420
173
34
154
116
30
172
2000
H1 2000 vs H1 1999 %
Volume
Value
103
102
131
249
132
193
226
302
104
100
111
107
109
134
95
75
124
164
148
112
126
Major Exporters of above mentioned goods to Russia
Countries
US$, mln
Extra CIS
207
80
66
63
52
51
51
Germany
USA
France
UK
Finland
Italy
China
CIS
Ukariane
Kazakhstan
122
24
Page 18
127
114
200
372
125
110
144

Major Purchasers of Export basic Chemicals
Products
1000 tonnes
Plastic Articles
159
Synthetic Resins and plastics
212
of which
Polyethylene
7
Polypropylene
7
PVC
6
Polystyrene and its Copolymers
27
Polyurethanes
5
Polyethylene Terephalate
112
Paints and Varnishes
50
Titanium Dioxide
25
Synthetic Detergents
34
Fungicides
9
Synthetic Rubber
11
Tyres
2022
Passenger Car tyres
1714
Truck Tyres
125
H1 2000 vs H1 1999 %
Volume
Value
157
112
153
114
133
143
261
93
187
179
139
133
105
184
128
132
136
150
Major purchasers of above mentioned chemiclas
Countries
US$, mln
Extra CIS
China
Finland
USA
Turkey
Switzerland
Latvia
Brazil
UK
411
360
117
106
88
85
75
59
CIS
Ukariane
Kazakhstan
128
92
Page 19
102
111
211
84
104
164
111
129
78
203
107
108
86
69

JSC Sibur -Neftekhim
Company's output volumes, 1000 tonnes
1999
Q1 2000
Ethylene
101.0
44.5
Propylene
49.6
21.7
Benzene
18.7
11.9
Ethylene Oxide
15.0
8.7
Monoethylene Glycol
90.4
30.4
JSC Kaprolaktam
Production of Main Chemicals in 1999-Q1 2000 Thou t.
1999
Q1 2000
Liquid Chlorine
28.3
9.1
Caustic Soda
74.0
24.0
Polyvinyl Chloride
26.6
7.6
PVC Plasticate
21.3
5.2
Polymer Film
7.0
2.5
JSC Syntez
Production of Basic Commodities in 1998-1999 t.
1999
Q1 2000
Lead Tetraethyl Solution
7587
8179
Ethanol Amines
3703
8249
Wetting Agents
919
1535
Formal Glycol
291
265
Hydrogen Peroxide
5843
7885
Acetone
3533
4741
JSC Orgsteklo
Output Volumes of Main Product Tyres in 1998-1999 t.
1999
Q1 2000
Organic Glass
2035
3380
PMIMA Dacryl
1712
1700
MMA-monomer
7350
9100
Acrylic Resins
113
273
Acrylic Copolymers
262
690
Aluminium Sulfate
22100
32300
Page 20

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QUARTERLY RUSSIAN

PETROCHEMICAL INDUSTRY REPORT

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company is of key importance for the

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October, 2000 / Issue No. 14

caustic, sytanols and PVC. These projects

QUARTERLY RUSSIAN PETROCHEMICAL REVIEW

October, 2000 / Issue No. 14

QUARTERLY RUSSIAN PETROCHEMICAL REVIEW

Basic Petrochemicals production, H1 2000

H1 2000 vs H1 1999 Share of Total

H1 2000 vs H1 1999 Share of Total

JSC Angarsk Petrochemicals, Angarsk

Central Fuel Company, Moscow Refinery

JSC Nizhnekamskneftekhim, Nizhnekamsk

JSC Salavatnefteorgsyntez, Salavat

JSC Stavropolpolymer, Buddenovsk

October, 2000 / Issue No. 14

QUARTERLY RUSSIAN PETROCHEMICAL REVIEW

H1 2000 vs H1 1999 Share of Total

JSC Nizhnekamskneftekhim, Nizhnekamsk

JSC Norsi, Kstovo

JSC Omsknefteorgsyntez, Omsk

JSC Ryazan Refinery

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JSC Ufaneftekhim, Ufa

JSC Angarsk Petrochemical

Coke Oven Benzene

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