Russia Petrochemicals Report Q2 2016

BMI Industry View

SWOT

Political

Economic

Operational Risk

Industry Forecast

Table: Russia - Petrochemicals Historical Data & Forecasts, 2012-2020

Macroeconomic Forecast

Economic Analysis

Industry Risk/Reward Index

Europe Petrochemicals Risk/Reward Index

Table: European Petrochemicals Risk/Reward Index (scores out of 100)

Russia Petrochemicals Risk/Reward Index

Market Overview

Table: Cracker Capacity Data - Historical Data & Forecasts ('000 tpa)

Industry Trends And Developments

Fertiliser

Upstream

Company Profile

Sibur Holding

Table: Financial Highlights (RUBmn, Unless Stated Otherwise)

Lukoil

Table: Financial Results (USDmn)

Nizhnekamskneftekhim (NKNK)

Table: Financial Results (RUBmn)

Regional Overview

Plant Turnarounds

Table: Europe Plant Turnarounds

Global Industry Overview

Global - Crude Oil, Refined Fuels And Natural Gas Prices

Table: Global Energy Price Forecasts (2014-2019)

Table: Global Energy Price Forecasts (2020-2025)

Demographic Forecast

Demographic Outlook

Table: Population Headline Indicators (Russia 1990-2025)

Table: Key Population Ratios (Russia 1990-2025)

Table: Urban/Rural Population & Life Expectancy (Russia 1990-2025)

Table: Population By Age Group (Russia 1990-2025)

Table: Population By Age Group % (Russia 1990-2025)

Glossary

Table: Glossary Of Petrochemicals Terms

Methodology

Industry Forecast Methodology

Risk/Reward Index Methodology

Table: Petrochemicals Risk/Reward Index Indicators

Table: Weighting Of Indicators

Russia Petrochemicals Report Q2 2016

The Russian petrochemicals industry saw robust output growth as a result of the depreciation of the roubleand the decline in naphtha feedstock costs. However, growth will come under pressure in 2016 due to asluggish recovery in domestic end-markets.

Basic chemicals production rose 6.3% year-on-year (y-o-y) in 2015 with all segments witnessing increases.

According to the Federal State Statistics Service of the Russian Federation, production of ethylene exceeded2.79mn tonnes, up 16.4% y-o-y. However, Russia's petrochemicals sector also suffers from structuralinefficiencies which have deterred investment, particularly in the country's oriented production. Challengesinclude the country's manufacturing sector, which is not competitive without the presence of governmentincentives. Importantly, we do not expect such hurdles to be cleared in the short-to-medium term, resultingin a subdued outlook for the country's export-led industries.

In 2016, the construction sector is due to contract by 1.2%, while the automotive industry will see outputdecline 3.1% following heavy slumps in 2015. With these sectors playing a critical role in thepetrochemicals markets, they will impact heavily on domestic petrochemicals production across a widevariety of segments.