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Russian producers to stand for higher duties on polyethylene and polypropylene

January 19/2010
MOSCOW (MRC) -- Revision of new import duties on polyethylene and polypropylene is likely to be discussed already on January 27, 2010, at the 13th session of the Russia, Belarus and Kazakhstan Customs Union Commission.
That overture of Russian producers is regarded as a response to the introduced Common Customs Tariff, which is going to change the situation in the Russian polymers market seriously.
Import duties by 124 codes of Foreign Economic Activity Commodity Classification (FEACC), which someway or other regard the polymers market were changed effective January 1, 2010 Ц according to MRC data. Duties on 16 FEACC codes were raised, whereas duties on 108 codes were cut down. Particularly, the import duty on PVC-S was cut down to 10% from 15% (see News of 19.01.10); as well, duties on some polystyrene types were reduced to 0% (see News of 18.01.10).
As referred to Head of Department of the Ministry of Economic Development Alexey Likhachev in Vedomosti, it is suggested reviewing duties on palm oils, petrochemical products, throttles, chalk paper and polycarbonates. The main changes will be regarding the petrochemical industry: import duties on polyethylene and polypropylene will be increased, a member of the commission and a source closely related to it said. Sibur turned to Vice Prime Minister Igor Sechin with the proposal to raise these duties.

         Common Customs Tariff to change the situation in the polymers market  - Infographics

       MRC Reference

Over the course of the 11 months of 2009, polyethylene imports in Russia dropped by 24%, compared to the same period of the previous year. The most serious decrease was recorded in imports of HDPE (-36%) and LDPE (-23%).


Decrease in PP imports was not so significant and moved at the level of 17%. At the same time, PP-random imports went up by 43%, whereas those of PP-homo and PP-impact decreased 20% and 32%, respectively.

Sibur Holding is the largest Russian petrochemical group.


 Gazprombank (70% minus 1 share);
 Gazfond (25% plus 1 share);
 5% reserved for option program.


The share in the Russian market in 2008:

 polyethylene - 11.1%;

 polypropylene - 16% (including PP-random - 11.2%);
 ABS - 5.2%;
 PVC - 8.1%.




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