OREANDA-NEWS. July 21, 2015.

Excerpts from Dmitry Medvedev’s opening remarks:

Meeting on priority investment projects and import substitution in petrochemistry

Our current meeting is devoted to the development of petrochemistry and import substitution.

On the whole, the development of petrochemistry, as of the entire chemical industry, is irregular. The growth of chemical production is at a fairly high level: over six percent in the first five months of 2015 compared with the corresponding period of the past year. However, the output of some products (plastic goods, for instance) has gone down by 2.5 percent.

Petrochemical plants have continued to work steadily even in the current uneasy conditions. They launched new projects and underwent modernisation. The main goal is to increase the share of domestically produced goods with a higher added value. Importantly, they are produced from domestic raw materials, in which our country abounds.

We have adopted a few documents for this purpose, primarily the strategy for the development of the chemical and petrochemical industry until 2030, which provides for the construction of many corresponding clusters.

We have a system for supplying hydrocarbons to petro- and gas chemical plants. In addition to ensuring adequate supplies, it should create a reserve for launching new projects.

Today we will discuss which projects the Government should continue to support and which can develop independently with the participation of private business. There is also a number of other ideas, for instance, proposals to encourage domestic demand for the production of petrochemistry in road and housing construction, utilities and car manufacturing. We should also decide whether we can abstain from imposing restrictions on the use of polymers in view of the development of biodegradable polymers.

I would also like to hear proposals on support for import substitution in the production of equipment for petrochemistry and the chemical industry in general. This is an important area that implies a higher added value in petrochemistry and further reduction of dependence on foreign suppliers wherever possible and sensible.