Russian petrochemical companies to resolve dispute over ethylene prices

16-Sep-10

Russian petrochemical companies Salavatnefteorgsintez and Kaustik will resolve their dispute over ethylene prices within two months. In the interim Kaustik will receive ethylene at 19,000-19,500 rubles (US$633-650) per ton until the price row is settled, as reported by RIA Novosti. Kaustik will be supplied 4,500 tons of ethylene per month. Kaustik was compelled to get production to a halt last month when after Salavatnefteorgsintez stopped supplying it ethylene. Kaustik accused its supplier of imposing disadvantageous terms for raw material supplies, which the supplier refuted as it was offering its products at market prices, currently 24,500 rubles per ton. Russia's anti-monopoly watchdog has launched a probe into Salavatnefteorgsintez's abuse of its dominant position on the ethylene market.