Minpromtorg has estimated that the consumption of Russian chemical products in the domestic market has increased compared to the previous year. There was also an increase in production volumes in several categories and a decrease in import levels. According to representatives of the Ministry, the worsening foreign economic situation under the constraints caused by the pandemic provided an opportunity to expand internal economic ties of chemical production with domestic consumers.
“The consumption volume of products of the chemical complex on the internal market increased and was estimated at 3,519 billion rubles, which exceeded the same indicator of 2019 by 3.3%. In the difficult conditions associated with the pandemic, this is undoubtedly a good indication that chemical companies have been able to overcome the crisis and respond to the needs of the consumers by offering competitive products,” said Mikhail Ivanov, Deputy Minister of Industry and Trade of Russia, assessing the results of the chemical industry in the first nine months of 2020.
Also, despite the difficult economic situation, there has been a steady growth in the production of six types of chemical products. Production of dyes and pigments increased by 21%. Production of slabs, sheets and polymer films increased by 8%. Production of plastic pipes, hoses and fittings increased by 7%. Production of varnishes and paints increased significantly – by over 4% and mineral fertilisers by over 3%. Production of ammonia increased by about 0.5%.
“The results of the first nine months of 2020 show that despite serious pressure from external factors, chemical companies were able to overcome the decline that we saw in the first half of the year and reach positive production figures in the second half of 2020,” Ivanov said.
According to the latest data, the production indexes of chemicals and products in January-September 2020 were over 106%, and production of rubber and plastic products was 101%.
Due to limitations associated with the coronavirus epidemic, the volume of exports of chemical complex products decreased by 17%. At the same time, exports of dyes and pigments increased noticeably – over 6%, and plastic products – over 2%.
In the first nine months of 2020, the volume of chemical complex import purchases decreased by almost 8% to $17.4 billion. Minpromtorg is implementing an import substitution plan, which includes 136 investment projects with a total capital investment of over 500 billion rubles.
The Ministry of Industry and Trade of the Russian Federation uses a wide range of methods to support enterprises in the chemical industry. These include stimulating demand and increasing the competitiveness of the Russian chemical industry, providing soft loans to foreign consumers, subsidising transportation costs, certification and homologation of export products. In addition, the chemical industry can receive compensation for lost income on loans and subsidies to support high-tech production.