Vnesheconombank, the Russian state-run bank, has reportedly opened a $153m credit line for a subsidiary of SIBUR Holding which will see the construction of one of the largest petrochemical plants built in Russia in recent decades.

The credit line has been opened for Tobolsk-Polymer LLC, a subsidiary of SIBUR Holding - Russia’s largest petrochemical company.

The agreement to open a credit line was signed by Vladimir Dmitriev, Chairman of Vnesheconombank, and Dmitry Konov, President of SIBUR, during the 8th International Investment Forum ‘Sochi-2009’.

The funds will be used to finance the construction of a polypropylene production complex in Tobolsk with an annual capacity of 500,000 tonnes, while major equipment for the new plant will be delivered at the construction site during 2010-2011.

The end of construction and the start of pre-commissioning work is expected in the second quarter of 2012.

Construction of the polypropylene complex, proposed by SIBUR, is part of the ‘Strategy for the Development of the Chemical and Petrochemical Industry in Russia for the period up to 2015’. The project is focused on improving the efficiency of Russia’s natural resources, ecology and environmental protection, while also providing a boost to industries such as car manufacturing.

Konov commented, “We welcome the state bank’s credit funding and government’s support. The new complex will be among the largest petrochemical plants built in Russia over the last few decades. It will offer a comprehensive solution to such challenges as advanced processing of hydrocarbon resources and the technological modernisation of Russian industry”.

SIBUR Holding is Russia’s largest petrochemical company in Central, Eastern Europe and the CIS, including 34 operations ranging from the processing of gas to the manufacture of consumer products.

The company only recently announced the acquisition of Citco Waren-Handelsgesellschaft m.b.H. (Citco), a leading international petrochemical trader established in Vienna in 2003.

The acquisition will support the continued development of SIBUR’s international sales, particularly into the European Union and Asia.