Company SABIC SALES EUROPE B.V. came under the sanctions of the Ministry of Economic Development and Trade of Ukraine (MEDT). Sanction is imposed for violation of the provisions of Art. 1 of the Law of Ukraine “On the procedure for making settlements in foreign currency”. This is stated in the order of the Ministry of Economic Development and Trade N1203 of August 29, 2018. The essence of the violation is the non-return of the advance payment to the resident of Ukraine, who purchased the products. An individual licensing regime has been introduced for the company.

As market participants told us on condition of anonymity, sanctions against SABIC may not pass without a trace for Ukraine and consumers.

“This is the world’s largest petrochemical company from the UAE. In Ukraine they supply polyethylene, polyvinylchloride, polypropylene, etc. This raw material makes pipes, sachets, food film, packaging and other types of plastic products. Their share in the Ukrainian market in the order of 10-15% and the stopping of supplies will lead to a deficit, which will affect the growth of prices of everything that is packed or transported in a polymer container, “one of the market participants told UBR.ua.

SABIC is the largest manufacturing company in Saudi Arabia engaged in petrochemicals, chemicals, industrial polymers, fertilizers and metals. The government of Saudi Arabia owns 70% of the shares. SABIC SALES EUROPE is a Dutch company, a subsidiary of Arabian Saudi Basic Industri Corporation.