OREANDA-NEWS. Ukraine's petrochemicals industry will not pick up in the context of the current circumstances. RnR Market Research maintain this situation will endure until amelioration in the political, economic and security situation comes through. In terms of consumption, the market will remain well below the 2007 peak over the forecast period and while growth may return, recovery will be impeded by the country's political splits and economic slump.

Most of Ukraine's refineries remained closed in 2015 leading to a severe underutilisation of its refining capacity with knock-on effects for the country's embattled petrochemicals industry, which lacks sufficient local feedstock access. Although the bulk of the petrochemicals industry is in the west of the country, a lack of access to markets in the east simply compounds its problems. In 2016, we believe that the country's political and economic crisis will drag on and curtail exports. As such, the petrochemicals industry will suffer from the low levels of consumption in end-markets, such as the automotive and construction sectors.

RnR Market Research maintain this situation will endure until an amelioration in the political, economic and security situation comes through.