Russia Needs to Import Petrochemicals from Iran

Russian industries require importing petrochemicals from Iran to develop, said Vadim Konakov, managing director of Russia’s SINIKON Company.

Pointing out to Russia’s 10-year outlook plan for economic activities, he said the Russian economy and the country’s petrochemical sector are in a critical situation, Shana news agency reported on December 14.

However, renovating the country’s infrastructures in different parts of the economy can boost the demand for petrochemical products, he added.

“Considering the implementation of development plans over the next 20 years in Russia, the need for importing petrochemical products is felt more than the past.”

Before the collapse of the Soviet Union, Russia was among the top five producers of ethylene in the world, but it has lost the position to Iran and Saudi Arabia.

The Russian petrochemical industry in recent years has seen its competitiveness in many products increase on the back of an advantageous feedstock position and higher international prices.

At the same time, the domestic demand in Russia has continued to grow strongly, and this has led to Russia swinging from a net exporter to importer for some key petrochemicals and polymers.

Polymer production has been growing at an annual rate of almost 7% on average over the last seven years. A total of 4.4 million tons were produced in 2014, with PE accounting for 37%, PP for 25% and PVC for 16% of total output. Demand for basic polymers rebounded after 2009, rising by 8% a year through 2014. PVC saw the largest increase in consumption (47%), followed by PE (40%), PP (32%) and PS (43%), according to Ernst & Young.