Medvedev approved the allocation of $1.75 billion from the NWF for the construction of the petrochemical plant in the Urals

GORKI, October 26. Prime Minister of Russia Dmitry Medvedev approved the allocation from the national welfare Fund (NWF) of $1.75 billion for the construction of the West Siberian petrochemical plant in the Tyumen region. The government considers that the new production will help to replace imported polyethylene and polypropylene.

“Let’s start with the number of new documents – one of them concerns the extension of the list of investment projects, for which funds are used from the national welfare Fund, said the Prime Minister at a meeting with his deputies. – We will continue this work, including, taking into account the current situation. It is about a petrochemical plant for the production of polymers in the Tyumen region”.

“The total investment of nearly $10 billion, of which NWF funds – $1 billion 750 million That is the amount of funding from other sources is significant,” he said.

“These are the materials which we in our country are not enough”

According to Medvedev, the plant will produce up to one and a half million tons of polyethylene and half a million tons of polypropylene per year. “These are the materials which we in our country are lacking. Some of them continue to purchase from abroad. Such production will reduce dependence on imports”, – said the Prime Minister. He added that the government has estimated that the construction of the new complex ultimately will contribute to the emergence of a large number of jobs – up to 15 thousand.

According to the head of the Cabinet of Ministers, the funds from the NWF will be allocated according to the principle debt financing. “We hope that this will be a major, major facility, and we will continue in other areas”, – concluded Medvedev.

By order of the government published on the official website of the Cabinet, the list of sustainable infrastructure projects, in securities which can accommodate the funds of the national welfare Fund, supplemented by the project for the construction of the West Siberian petrochemical plant. “This will reduce dependence of Russia on import of polyethylene and polypropylene, and products of them”, – consider in the government.

The project involves the construction in the Tyumen region high-tech and eco-friendly production scarce in the domestic market of polymer products with high added value, capacity of 1.5 million tons per year of polyethylene and 0.5 mn tons of polypropylene. The Cabinet clarifies that “currently dominated by imports” of these materials.

Co-investment funds in the NWF project is expected to be within the quota of funds approved for the Russian direct investment Fund (RDIF). Total investment in the project will amount to $9.5 billion , of which equity capital of PJSC “SIBUR holding” – $4,45 billion, funds the RDIF co-investors and banks – $3.3 billion, NWF – $1.75 billion