Sibur will review the project for $10 billion against the backdrop of anti-Russian sanctions

Sibur and the Chinese Sinopec will have to revise the project to build the Amur gas chemical complex for $10 billion. Because of the sanctions, the partners had to “freeze” part of the workRBC source says

Due to anti-Russian sanctions, Sibur and its Chinese partner Sinopec will reconsider the strategy for the implementation of the mega-project for the construction of the Amur gas chemical complex, which they were going to complete by mid-2024.

Sibur and Sinopec see the need to revise the strategy for the implementation of the Amur GCC project, the relevant decisions are planned to be made in the near future, ”Sibur press secretary Artur Toporkov told RBC. Sibur owns 60% of the Amur GCC, Sinopec - 40%.

As of the end of March 2022, the overall project readiness level was 37.8%, and for individual process units it was 43%, Toporkov says. At the moment, construction, installation and other work is ongoing at the construction site in Svobodny (Amur Region), he stressed.

But the partners had to freeze part of the construction of this plant due to difficulties with the delivery of equipment, a source close to several contractors of the project told RBC. This happened due to sanctions, including on the supply of high-tech equipment to RUSSIA, which were introduced by Western countries in response to the ongoing military special operation in Ukraine.

On March 25, REUTERS reported that Sinopec had suspended talks on a major investment in Russia's petrochemical industry due to the risk of falling under Western sanctions . But then Sibur announced that it was continuing the joint implementation of the Amur GCC with a Chinese partner. Later, Sinopec Vice President Yu Baocai confirmed that the company is not curtailing projects in Russia: “The company's work in Russia is currently progressing steadily. There are no signs of a decrease in the value of the assets.”

Sibur reduced the construction time for a new large plant by six months Business

The Amur GCC is to become the world's largest complex for the production of basic polymers with a capacity of 2.7 million tons per year - 2.3 million tons of polyethylene and 400 thousand tons of polypropylene. It was planned that he would receive raw materials from the Amur gas processing plant, which is being built by Gazprom.