With the possibility of reduction in Iran’s petrochemical exports to Europe due to falling prices, Iran and Russia have begun new round of talks to sign new petrochemical contracts.
Along with the countdown for the lifting of oil sanctions, the new round of Iran-Russia negotiations have been launched to develop petrochemical trade as well as export of polymer products to Russia.
Accordingly, Russia appears to be the new market for Iranian petrochemical products during the post sanction era.
Due to falling prices of crude oil and consequently the petrochemicals, the export of these products to the European Union (EU) countries is not economically justified.
Meanwhile, Vadim Konakov, President of Russian Sinikon Company has pointed out the low growth of petrochemicals production requesting to import a variety of petrochemical and polymer products from Iran.
Konakov highlighted that Sinikon needs to import petrochemical products for at least 20 years; “Russia relies heavily on the imports of petroleum products which necessitates a good cooperation between importers and manufacturers of these products in the two countries,” he asserted.
On the other hand, Production Control Manager of National Petrochemical Company (NPC) Ali Mohammad Bossaghzadeh has recently referred to the fall in global oil prices stressing “Iran’s petrochemical export to European markets is not currently competitive although majority of Iranian petrochemicals are exported to other markets.”
Simultaneously with the start of new round of negotiations between Iran and Russia to sign new contracts on petrochemical exports, Muhammad Reza Eslamifar, the head of Lorestan petrochemical complex, has announced the export of a 500-ton shipment to Russia mainly consisting of various grades of polyethylene.