Russia sees investment in the petrochemicals industry rise up to US$3 billion a year as the industry recovers from the economic crisis, as reported in Reuters. Currently, Russia is the world's top oil producer with a 13% share of the global oil output, but it accounts for only 2% of petrochemical production. The country is looking to raise its share through a combination of protectionist measures and state funding.
Energy Minister has said the government wants the petrochemical industry to become the fifth-largest sector in Russia in terms of its contribution to the gross domestic product. He promised more state guarantees on loans for petrochemical companies. The country’s largest bank, state-controlled Sberbank has issued a 26 bln rouble (US$841.4 mln) loan to petrochemical company Kazanorgsintez. Earlier this year, state development bank VEB has decided to provide US$1.4 bln long-term credit to a unit of petrochemicals company Sibur for construction of a polypropylene plant with an annual capacity of 500,000 tons in the Siberian city of Tobolsk.