OREANDA-NEWS. July 15, 2010. State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’and subsidiary company OJSC SIBUR Holding – LLC Tobolsk –Polymer entered into Agreements on Extending Long-Term Credits for a Total amount of 1 441 Million US Dollars to the Company.

On behalf of Vnesheconombank the Agreements were signed by Vnesheconombank Chairman Vladimir Dmitriev, on behalf of LLC Tobolsk – Polymer – by SIBUR President Dmitry Konov.

Under the Agreements signed credit resources in the amount of 1 220 million US dollars are to be made available for a period of 13.5 years against guarantees of export insurance agencies in European countries where SIBUR purchases equipment for a new polypropylene complex. The remaining funds in the amount of 221million US dollars are to be provided by opening a credit line for a period of 9 years.

The Agreements on credit financing are aimed at implementing the Memorandum of Understanding concluded by the parties in 2009 in the course of Russian President Dmitry Medvedev’s visit to Italy.

At present, construction work is under way at all main LLC Tobolsk – Polymer’s facilities. Large-scale equipment is to be delivered to the construction site from the 3d quarter of 2010 to the 4th quarter of 2011. The Complex is expected to be commissioned in the 4th quarter of 2012.

The construction of the Complex is provided for by the Government Strategy for the Development of Chemical and Petrochemical Industry of Russia for a Period of up to 2015.

The Project corresponds to Vnesheconombank’s main lines of investment activity and aims to enhance hydrocarbons utilization efficiency and exports of high-value added products. The project’s implementation would significantly increase associated petroleum gas processing volumes thus improving the ecological situation in the region.