Lisichansk Oil Refinery (Linik, Lugansk region, Ukraine, is part of Rosneft), the only producer of polypropylene (PP) in Ukraine has canceled plans to launch in 2016 the production of PP at the Lisichansk refinery, the materials of the company.

The corresponding decision the company said in the minutes of the tender for the execution of services for the protection and maintenance of rail cars to polypropylene from this refinery.

“Stop holding purchased by lot, services for the protection and maintenance of railcars with polypropylene PJSC” Linik “in view of the abolition of the launch polypropylene production in 2016,” – the document says.

It was noted earlier that the tender was announced on March 28 this year. According to the tender documents, the company planned for the period from 1 July 2016 on 30 June 2017 with the factory ship the 35 th. Tons of PP.

Even in the second half of January 2016, Rosneft, the largest state-owned oil company of Russia, commenting on the potential sanction of Ukraine, noted that under certain efforts Linik seriously injured during the fighting, it is possible to return to work.

Earlier this year, deputies of the Verkhovna Rada proposed to introduce sanctions against Rosneft and its subsidiaries in Ukraine, “as the military aggression against Ukraine is funded through the budget of the Russian Federation.” Among the restrictions proposed by MPs – the termination of relations with Ukrainian state companies Rosneft, the blocking of bank accounts, the prohibition of the transit of goods. Also, the sanctions provided for tax audit of Rosneft in Ukraine.

Meanwhile, at the beginning of February 2016 the head of the Luhansk regional military-civilian administration George Tuck told reporters that Linik may partially resume production of PP in mid-March.

Lisichanskiy refinery – the second power in Ukraine oil refinery, it is engaged in refining crude oil and petroleum products. Rosneft received the asset after the absorption of TNK-BP. Power Lisichansk refinery for refining up 6.5 million tons, the production of polypropylene (PP) -.. 100 thousand tons.. Total production of PP at the end of 2011 amounted to 93.8 thousand. Tonnes. In mid-April 2012 the Lisichansk refinery was stopped completely. In less than four months Linik produced about 23.6 thousand. Tons of PP. Previously, the company had planned to resume production at the refinery in July 2014.

According DataScope report, in 2015 the total volume of foreign supplies of propylene polymers in the Ukrainian market declined by 15% to 96.2 thousand. Tons compared to 113.4 thousand. Tons a year earlier. The biggest drop in supplies came from PP-homo, the smallest decline in demand had on stat propylene copolymers (PP-random).

Rosneft after buying TNK-BP has become the world’s largest public oil company. In the company accounts for about 5% of global oil production, and its proven reserves at the international category will exceed 5 billion tons of oil equivalent. The structure includes Rosneft Lisichansk Refinery and Angarsk Polymer Plant.

MRC