VEB.RF Considers Financing Construction of Amur Gas Chemical Complex

VEB.RF, together with Russian commercial banks, is ready to consider its participation in financing the construction of the Amur Gas Chemical Complex for the production of polymers with a capacity of up to 2.7 mtpa. The project was discussed at a meeting between Russian Prime Minister Mikhail Mishustin and the members of the Government Commission on Social and Economic Development of the Far East in Blagoveshchensk. The event was attended by VEB.RF’s Chairman Igor Shuvalov.

The Amur Gas Chemical Complex project was initiated by SIBUR. The project is aimed at expanding the export of non-primary non-energy goods, and contributes to the development of the advanced development zone of the Free Port of Vladivostok.

“SIBUR is a strategic partner of VEB.RF. The construction of the largest petrochemical facility ZapSibNeftekhim in Tobolsk was financed with our support. This project made the Tyumen Region a leader among the constituent entities of the Russian Federation in terms of the industrial production index in January-May 2020. ZapSibNeftekhim's products play an important role in substituting polymer imports and will allow creating Russian equivalents of foreign products,” Igor Shuvalov noted.

Igor Shuvalov also visited the construction site of the Amur Gas Processing Plant. At the end of 2019, VEB.RF signed an agreement to finance the project with a syndicate of Russian, European and Chinese lenders, totalling 11.4 billion euros. VEB.RF’s commitment played a significant role in financing the transaction and attracted offers from potential participants: a total of 21 banks are involved in financing the project. The approved VEB.RF's commitment to the project amounts to 500 million euros. The project is implemented by Gazprom Pererabotka Blagoveshchensk LLC (part of the Gazprom Group) on the territory of the advanced development zone of the Free Port of Vladivostok, the Amur Region. The plant is designed by NIPIGAS, a leading Russian EPC service centre (part of SIBUR). Engineering has begun in 2015. NIPIGAS provides a full range of services for the project: performs detailed design, supplies equipment and materials, performs construction and installation works, and ensures mechanical availability and handover of the plant to Gazprom Pererabotka Blagoveshchensk. It is expected that the Amur Gas Processing Plant will become one of the largest natural gas processing plants in the world. It will play a significant role in supplying natural gas to China through the Power of Siberia pipeline. The project will create up to 3 thousand new jobs.

During his visit to Blagoveshchensk, Igor Shuvalov saw the key infrastructure projects of the city, discussed the development plan for the area of the Blagoveshchensk-Heihe road bridge, and got acquainted with the urban development of the urban environment Golden Mile tourism cluster.

Currently, VEB.RF is considering participation in the financing of 20 projects in the Far Eastern Federal District totalling 1.6 trillion roubles; the estimated amount of funding from VEB.RF exceeds 280 billion roubles.

With financial support from VEB.RF, 12 projects are already being implemented in the district with a total cost of 2.5 trillion roubles. The volume of investments of the development institution in projects in the district exceeds 600 billion roubles, of which 41.6 billion is the volume of VEB.RF investments in the Amur Region.

“In the Far Eastern Federal District, VEB.RF is supporting Russia’ major projects to create large-scale state-of-the-art production facilities. It is important for these facilities to be built in a comfortable urban environment, and every citizen should feel a change in the quality of life as a result of our joint work,” Igor Shuvalov pointed out in Blagoveshchensk.

VEB.RF pays great attention to the development of infrastructure in the regions of Russia, especially in the Far East, where projects related to the development of transport hubs are in high demand. VEB.RF has already lent a helping hand to build and rehabilitate airports in Khabarovsk and Vladivostok. Kamchatka Airport reconstruction project is currently under review and structuring. Currently, a tender is being held for the conclusion of a concession agreement on the reconstruction of Blagoveshchensk International Airport. VEB.RF and the Far East and Arctic Development Fund (VEB.RF Group) are interested in considering the possibility of providing financing to the winning investor. The reconstruction of the airport will improve the quality of passenger service and increase its capacity. Financing the infrastructure, including the modernisation of major airport hubs, including the construction and reconstruction of terminals, is one of the key tasks of the development institution. This includes developing the infrastructure, improving the quality of people’s life, and developing agglomeration and regional ties.

VEB.RF also participates in financing the construction of tankers at the Zvezda shipyard, a gas-to-chemicals methanol facility in Nakhodka (Primorie Territory), mining projects (development of the Udokan deposit), port infrastructure, and urban economy projects.

The Far East and Arctic Development Fund supports 19 ongoing investment projects in the Far East with a total volume of 541.1 billion roubles, of which the FEDF's investments amount to 68.7 billion roubles. In the Amur Region, the first and so far the only Russian soy isolate and dietary fibre plant was built with the support of the FEDF. This year, the plant shipped its first products. The total investment in the project amounted to 5.4 billion roubles, including FEDF’s commitment of 1.7 billion roubles.