OREANDA-NEWS. December 8, 2009. In the course of Russian-Italian interstate consultations at the summit level in Rome (Italy), State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ Russian petrochemical company OJSC SIBUR Holding, Italian export insurances Agency SACE SpA and Italian construction-engineering company Tecnimont SpA entered into a Memorandum of Understanding.

On behalf of Vnesheconombank the Memorandum was signed by Vnesheconombank Chairman Vladimir Dmitriev, on behalf of OJSC SIBUR Holding – by LLC SIBUR President (the Management Company of SIBUR Holding) Dmitry Konov, on behalf of SACE SpA – by its Chief Executive Director Alessandro Castellano, on behalf of Tecnimont SpA - by its President Fabrizio Di Amato.

The Memorandum provides for cooperation between the parties in implementing and financing a project aimed at constructing a polypropylene production complex with a capacity of 500 thousand tons per a year in the city of Tobolsk (the Tyumen region). The new complex will become one of the largest in the world in terms of polypropylene production volume at a single facility.

The project’s initiator is OJSC SIBUR Holding. The project is being implemented by SIBUR under the Strategy of Chemical and Petrochemical Industry Development in Russia for a Period of up to 2015 with the assistance of the Russian Government and the Government of the Tyumen region. The project’s implementation would make it possible to involve up to 4.5 thousand people at a construction stage and provide an impetus to the development of a number of industrial sectors, above all those that manufacture products from polypropylene for construction industry, road facilities and housing and communal services.

Tecnimont acts as SIBUR’s contractor responsible for engineering, delivery of equipment and construction management of one of the new complex’s two installations.

Vnesheconombank’s participation in financing the project was approved by the Bank’s Supervisory Board. Vnesheconombank is expected to provide a considerable part of credit resources against insurance coverage of SACE SpA. Vnesheconombank opened the first credit line to finance the project in September 2009.