MOSCOW (MRC) - The Russian Ministry of Industry and Trade has once again refused to draw back the import duty on linear low density polyethylene (LLDPE).
Introduction of a duty was postponed until 2019, said participants of the meeting, which was held at the Ministry on Monday, 23 January. The next meeting of the government was held with the participation of all interested parties on the possible introduction of 6.5% import duty on linear polyethylene.
The participants of the meeting said the Ministry of Industry of the Russian Federation had once again refused to introduce import duty. The main reason is a significant dependence of local converters on imports of this type of polyethylene.
It is scheduled to return to this issue in 2019 in line with commissioning of new capacities for the production of linear polyethylene at the site Zapsibneftehim-2 (SIBUR). The project envisages introduction of a new production facility with capacity 1.5 mln tonnes per year of polyethylene, with 700,000-900,000 tonnes of them accounted for LLDPE.
Nizhnekamskneftekhim has brought up the issue of the introduction of 6.5% import duty on linear polyethylene many times. Company representatives said that they are ready to produce up to 200,000 tonnes of LLDPE, covering almost the entire demand in the Russian Federation.
A fee of 6.5% existed until 2010, but was cancelled because no company in Russia did not produce LLDPE.
Nizhnekamskneftekhim has been actively increasing LLDPE production since 2015 and this figure exceeded 73,500 tonnes in 2016.
As it was written earlier, Eurasian Economic Union separated linear polyethylene in the code - 3901 40 000 0 , which is a linear polyethylene with ethylene content of less than 95%, in Single Commodity Nomenclature of Foreign Trade from 1 January 2017.
MRC