Cabinet of Ministers of Ukraine extended restrictions on trading activity with Russia for one more year

MOSCOW (MRC) -- At its Tuesday meeting, the Cabinet of Ministers of Ukraine extended the embargo on shipments of a number of goods from the Russian Federation and the import duty on other Russian goods, introduced in 2016 in response to Russia's trade bans and restrictions regarding Ukraine, until 31 December, 2019, according to the website of the Ministry of Economic Development and Trade of Ukraine.

The government of Ukraine made this decision without discussion.

According to the decision of the Government of Ukraine dd. 30 December, 2015, as part of the response measures, the import duty established by the Customs Tariff of Ukraine have been applied to all goods originating from Russia since 2 January, 2016. At the same time, the preferential treatment with respect to the Russian Federation (free trade) was cancelled due to the violation of the agreement on a free trade zone dd. 18 October, 2011 by the Russian Federation.

Thus, the Cabinet of Ministers made changes to its resolution dd. 30 December, 2015 No. 1147 "On the prohibition of imports of goods originating from Russia into the customs territory", according to which it was extended until 31 December, 2019 (inclusive).

According to this decree, a complete ban was introduced on imports of such goods originating from the Russian Federation as of 10 January, 2016: vodka, confectionery, meat, chocolate and chocolate candies, baby food, fish, processed cheeses, beer, filter cigarettes, dog and cat food, and a number of other food items. Equipment for railways or tramways, diesel-electric locomotives was also banned.

And in 2017, additional items, such as polyethylene (PE) with a specific density of 0.94 or more, as well as polyvinyl chloride (PVC), not mixed with other substances; ammonium sulfate, a mixture of ammonium nitrate with calcium carbonate or other inorganic substances that are not fertilizers were included in the list.

At the same time, it is envisaged that this act will become null and void from 1 January, 2020, or after the cessation of the use of discriminatory and unfriendly actions by Russia in relation to Ukraine.

As reported earlier, that in May 2018, Ukraine imposed sanctions on Russian oil companies Rosneft, Lukoil and a number of Gazprom subsidiaries. This is stated in Annex No. 126 dd. 2 May, 2018, to the decision of the National Security and Defense Council (NSDC), published on the website of the President of Ukraine. According to the document, the blocking of assets, the restriction of trade operations and the prevention of the withdrawal of capital outside Ukraine are applied in relation to these companies. Restrictions were imposed for a period of 3 years.
MRC

PE imports to Belarus down by 11.3% in Jan-Oct 2018

MOSCOW (MRC) -- Overall polyethylene (PE) imports into Belarus decreased in the first ten months of 2018 by 11.3% year on year, reaching 91,600 tonnes. At the same time, local companies reduced purchasing of exclusively linear low density polyethylene (LLDPE), according to MRC's DataScope report.


According to the National Bureau of Statistics of Belarus, October 2018 PE imports to Belarus grew to 8,500 tonnes from 7,300 tonnes a month earlier. Local companies increased their purchasing of low density polyethylene (LDPE) in Russia and high density polyethylene (HDPE) in Saudi Arabia. Overall PE imports totalled 91,600 tonnes in January-October 2018, compared to 103,000 tonnes a year earlier. Demand for LLDPE subsided significantly, whereas demand for HDPE increased.

The structure of PE imports to Belarus by grades looked the following way over the stated period.


October 2018 total LLDPE imports rose to 3,000 tonnes from 2,700 tonnes a month earlier, local companies increased their purchases in Russia on the back of the shutdown for maintenance at the local producer. Overall imports of this PE grade into Belarus totalled 31,500 tonnes in January-October 2018, which virtually corresponded to the last year's figure.

October HDPE imports were about 5,000 tonnes, compared to 4,200 tonnes a month earlier. Local companies increased their purchasing of PE in Saudi Arabia. Thus, overall HDPE imports totalled 46,100 tonnes in the first teb months of 2018, up by 10.4% year on year.

Overall LLDPE imports reached 13,200 tonnes over the stated period, whereas this figure was 30,200 tonnes a year earlier.

MRC

Output of chemical products in Russia grew by 2.4% in January-November 2018

MOSCOW (MRC) -- Russia's output of chemical products rose in November 2018 by 3.4% month on month.
However, this figure increased by 2.4% in the first eleven months of 2018, according to Rosstat's data.

According to the Federal Service of State Statistics, last month's production of basic chemicals increased by 3.4% from October 2018, with ethylene accounting for the main increase. Overall production of chemical products grew in January-November 2018 by 2.4% year on year.

270,000 tonnes of ethylene were produced in November versus 196,000 tonnes a month earlier, Kazanorgsintez, Stavrolen and Ufaorgsintez's production capacities were shut down for maintenance in October. 2,700,000 tonnes of this olefin were produced in the first eleven months of 2018, up by 4.4% year on year.

Last month's production of benzene rose to 112,000 tonnes from 96,600 tonnes in October. Overall output of this product reached 1.278,400 tonnes over the stated period, up by 3.4%year on year.

November production of sodium hydroxide (caustic soda) were 109,000 tonnes (100% of the basic substance), which equalled the October figure. Overall output of caustic soda grew to 1.164,500 tonnes in January-November 2018, up by 3.2% year on year.

Last month's output of mineral fertilizers was 1.886 m tonnes (in terms of 100% nutrients) versus 1.736 m tonnes in October, Russian producers increased their production of nitrogen and potash fertilizers. Overall, Russian plants produced 20.850,000 tonnes of mineral fertilizers in the first eleven months of 2018, up by 1.2% year on year.
Nitrogen fertilizers accounted for the greatest increase - up by 3.8% year on year.
MRC

Indian HPCL-Mittal Energy to start new PP plant in 2021

MOSCOW (MRC) -- India's HPCL-Mittal Energy Limited, or HMEL, will start a new 500,000 mt/year polypropylene (PP) plant in Bhatinda in 2021, as per Apic-online.

The company has an existing 440,000 mt/year PP unit at the same site.

Sources welcomed the news, given that India's net deficit in PP was growing.

India is short of around 0.5 million mt/year of polypropylene in 2019, according to S&P Global Analytics.

As MRC wrote before, in March 2018, HMEL received clearance from India’s ministry of environments for the polymer addition project at its Guru Gobind Singh refinery and Petrochemical complex. The proposed units at the petrochemical complex include a 1.2m tonnes/year naphtha cracker, two linear low density polyethylene/high density polyethylene (LLDPE/HDPE) swing plants of 400,000 tonnes/year capacity each. The complex, in Bhatinda region of Punjab province, will also house a 450,000 tonnes/year HDPE unit, a 500,000 tonnes/year PP plant and a 55,000 tonnes/year butane-1 line.

Hindustan Petroleum Corporation Limited (HPCL) is an Indian state-owned oil and natural gas company with its headquarters at Mumbai, Maharashtra and with Navratna status. HPCL has about 25% marketing share in India among PSUs and a strong marketing infrastructure. The Government of India owns 51.11% shares in HPCL and others are distributed amongst financial institutes, public and other investors.
MRC

Canada gives struggling oil sector CD1.6 billion boost

MOSCOW (MRC) - The Canadian government said on Tuesday that it would spend CD1.6 billion (USD1.19 billion), mostly through loans, to assist the country’s oil and gas industry, which has struggled to move energy to U.S. markets due to full pipelines, as per Hydrocarbonprocessing.

Natural Resources Minister Amarjeet Sohi said in Edmonton, Alberta, that the aid package would include C$1 billion for energy exporters to invest in new technologies, boost working capital or find new markets.

Canada is producing a record 4.9 million barrels of oil per day this month, according to National Energy Board estimates, but pipeline capacity has not expanded as quickly to move crude to U.S. refineries. The bottlenecks have resulted in steep price discounts.

The federal aid package also includes C$500 million in commercial financing spread over three years to help high-risk oil and gas companies weather current market conditions, Sohi said. Another CD100 million will go toward energy projects through an innovation fund, and CD50 million will fund projects that involve reducing environmental damage from resource extraction.

The funds will stabilize struggling oil companies, but they really need greater access to markets, said Mark Scholz, president of the Canadian Association of Oilwell Drilling Contractors.

The struggles of the oil sector, concentrated in the western province of Alberta, have generated rallies in the past month demanding that Ottawa do more to help. Prime Minister Justin Trudeau’s Liberal government bought the Trans Mountain pipeline in the summer with plans to expand it, but a Canadian court quashed government approval of the project.

This month, Alberta Premier Rachel Notley took the rare step of ordering oil curtailments amounting to 325,000 barrels per day, starting in January, to reduce the province’s glut. Small oil producers will benefit from Ottawa’s support package, although it is “cut and paste” from federal aid for other sectors, Notley told reporters in Calgary.

Both Trudeau and Notley face elections next year and the oil industry’s problems pose a political liability. The Canadian economy is projected to grow by 1.9 percent next year, more slowly than this year’s 2.1 percent pace, partly due to weak energy investment, the think-tank Conference Board of Canada said.
MRC