On incentives for the oil and gas-chemical industry to establish industrial parks

The Government has reported on work to fulfil Presidential Instruction No Pr-2546 of October 30, 2013 (Sub-Clause C of Clause 1).

For instance, the Government has reported that the Ministry of Industry and Trade, in cooperation with the Ministry of Energy, is drafting a strategy for the development of the chemical and petrochemical sectors up to 2030, hereinafter referred to as the Strategy.

The draft strategy focuses on polymer processing incentives through implementing a cluster mechanism, including on the basis of petrochemical industrial parks.

The implementation of the cluster mechanism makes it possible to balance the production and consumption system, including the production of hydrocarbon feedstock and monomers and the processing of plastics. Moreover, this approach makes it possible to reduce feedstock delivery and product sale costs, as well as capital and operating expenses.

Russia’s regions have already accumulated positive experiences in implementing industrial park projects in the oil and petrochemical industry. The Volga Federal District, which has established the following facilities, leads the way in this area:

·        Two petrochemical industrial parks in the Republic of Bashkortostan – Salavat (at the Gazprom Neftekhim Salavat company) and Khim Terra (at the Polief company);

·        Two petrochemical industrial parks in the Samara Region – in the Novokuibyshevsk municipality (at the Samaranefteorgsintez company) and in the Togliatti municipality (at the Togliattisintez company);

·        A number of large industrial parks and Technopolis facilities in the Republic of Tatarstan primarily manufacturing petrochemical products – the Khimgrad Technopolis, the Kamskiye Polyany and M-7 industrial parks, the Alabuga Special Economic Zone, and the unfinished Mendeleyevsk industrial park;

·        An automotive industry and petrochemical innovation cluster in Nizhny Novgorod (at the GAZ Group automotive plant and the SIBUR Holding company).  

The Ministry of Trade and Industry is presently drafting the Sub-Programme Industrial Parks, as part of the State Programme Developing Industry and Increasing Competitiveness, hereinafter referred to as the Sub-Programme. The Sub-Programme will improve various incentives for the establishment of industrial parks in Russia and the provision of resources for project implementation purposes.

The mechanism of incentives for establishing industrial parks can also be used during the creation of industrial parks in the gas-chemical and petrochemical industry. The sub-programme should be submitted to the Government until February 1, 2014.