Russia’s Sibur signs financing deal for ZapSibNeftekhim project
Under the agreement, $3.3 billion of the total investment value will be provided by RDIF and international co-investors and commercial banks while up to $1.75 billion of the remaining value may be financed by the Russian National Welfare Fund (NWF) through secured debt financing. The company will also provide financing to the project with its own funds.
The project will include a steam cracker will with a capacity of 1.5 million tons/year of ethylene, around 500,000 tons/year of propylene and 100,000 tons/year of butane-butylene fraction. The complex will also house a 1.5 million tons/year PE plant and a 500,000 tons/year PP plant.
“The construction of ZapSibNeftekhim is SIBUR’s largest investment project with a significant impact on the Russian economy via addressing the important national objective of import substitution. The new facility will lead to a considerable reduction in the high proportion of imports of value-added petrochemical products in Russia. ZapSibNeftekhim’s products will be of the same quality as imports,” said Sibur’s CEO, Dmitry Konov and Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF).
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