Russian economy is in the midst of a slowdown – this, coupled with lack of access to natural resources has been a longstanding challenge for policymakers. Remoteness, climatic condition and industrial location have significantly pulled down the economic development of the country. Chemical industry in Russia has significantly relied on raw materials and abundance of natural resources. Subject to several downturns in economy, political structures, dissolution of Soviet Union, and wars, the chemical and petrochemical sector in Russia has remained a bright spot for the industrial growth in Russia.
Chemical sector needs a catalyst
Post the split of the Soviet Union, the state-owned assets were transferred to the private owners; however, today, the chemical sector in Russia is mainly represented by large corporations funded with private capital, including EuroChem Group, Sibur Holding, Nizhnekamskenftekhim, and Gazprom Neftekhim Salavat. These companies are the major producers and exporters of petrochemical and chemical products in Russia. According to a research conducted by the American Institute of Chemical Engineering, the pharmaceutical industry in Russia includes over 300 companies, and the total output by the chemical industry will exceed US$ 72.4 Bn (only include if it’s 2017 and above) The pharmaceutical preparations and materials accounted for nearly 74%, and the basic chemicals such as fertilizers and plastics accounted for nearly 68.3% of the overall production. Such factors are likely to contribute towards growth of the chemical sector in Russia significantly in the coming years.
A recent news update by the ICIS, the production of chemicals in Russia witnessed an increase by 7.5 percent in the first three months of 2017. Federal Service of States Statistics (Rosstat) further stated that the production of basic chemicals in Russia witnessed an increase by 9.4 percent in 2016, whereas caustic soda and benzene accounted for the substantial increase in terms of output. Nearly 268,000 tonnes of ethylene was produced in March 2017, and more than 773,000 tonnes of olefin were manufactured in the first three months of 2017. Significant increase in terms of production was mainly attributed to the stable operation of Angarsk Polymer Plant. Due to technical issues, the Angarsk Polymer Plant had shut the production process in February 2016, which had pulled down the pace of production process in 2016 as compared to 2017.
According to a recent report, North America is likely to witness a growth of over 9 million tons by 2023, whereas the producers in Russia is likely to face robust competition by the Middle East and the US due to consumer-friendly prices, relatively cheap stock and smart logistics. Such challenges are likely to impede growth of the chemical sector in Russia, posing various challenges in terms of growth.
Russian economy is in the midst of a slowdown – this, coupled with lack of access to natural resources has been a longstanding challenge for policymakers. Remoteness, climatic condition and industrial location have significantly pulled down the economic development of the country. Chemical industry in Russia has significantly relied on raw materials and abundance of natural resources. Subject to several downturns in economy, political structures, dissolution of Soviet Union, and wars, the chemical and petrochemical sector in Russia has remained a bright spot for the industrial growth in Russia.
Chemical sector needs a catalyst
Post the split of the Soviet Union, the state-owned assets were transferred to the private owners; however, today, the chemical sector in Russia is mainly represented by large corporations funded with private capital, including EuroChem Group, Sibur Holding, Nizhnekamskenftekhim, and Gazprom Neftekhim Salavat. These companies are the major producers and exporters of petrochemical and chemical products in Russia. According to a research conducted by the American Institute of Chemical Engineering, the pharmaceutical industry in Russia includes over 300 companies, and the total output by the chemical industry will exceed US$ 72.4 Bn (only include if it’s 2017 and above) The pharmaceutical preparations and materials accounted for nearly 74%, and the basic chemicals such as fertilizers and plastics accounted for nearly 68.3% of the overall production. Such factors are likely to contribute towards growth of the chemical sector in Russia significantly in the coming years.
A recent news update by the ICIS, the production of chemicals in Russia witnessed an increase by 7.5 percent in the first three months of 2017. Federal Service of States Statistics (Rosstat) further stated that the production of basic chemicals in Russia witnessed an increase by 9.4 percent in 2016, whereas caustic soda and benzene accounted for the substantial increase in terms of output. Nearly 268,000 tonnes of ethylene was produced in March 2017, and more than 773,000 tonnes of olefin were manufactured in the first three months of 2017. Significant increase in terms of production was mainly attributed to the stable operation of Angarsk Polymer Plant. Due to technical issues, the Angarsk Polymer Plant had shut the production process in February 2016, which had pulled down the pace of production process in 2016 as compared to 2017.
According to a recent report, North America is likely to witness a growth of over 9 million tons by 2023, whereas the producers in Russia is likely to face robust competition by the Middle East and the US due to consumer-friendly prices, relatively cheap stock and smart logistics. Such challenges are likely to impede growth of the chemical sector in Russia, posing various challenges in terms of growth.
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