The Government of the Russian Federation has approved the participation of the Chinese company Sinopec in a large petrochemical project. Thus, the Cabinet, led by Michail Mišustin, is acting in accordance with Moscow’s strategy of establishing closer economic relations with Beijing.
Russian private company Sibur wants to build one of the largest polymer factories in the world. The operation is intended to be in the Far East to be closer to the Chinese market as well as to the wider Asian market.
A brand new company is to be created, which will be called Amur Gas Chemical Complex. It will require investments of up to $11 billion and is due for commissioning in 2024 or 2025. Once at full capacity, it will produce 2.3 million tons of polyethylene and 400,000 tons of polypropylene per year. Sinopec is expected to acquire 40 percent of the shares in the joint venture.
Sibur’s representatives have indicated that they are ready to apply for co-financing of the Russian National Wealth Fund.Chinese companies are already actively involved in Russian projects, they are also involved in the extraction of Russian oil or natural gas. Ties between Moscow and Beijing have been growing since at least the beginning of the Ukraine crisis, when the West imposed several sanctions on Russia.