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MOSCOW (MRC) -- U.S. oil and gas major ExxonMobil has asked the Russian government to reimburse taxes worth "several billion roubles" it says it overpaid on a project in the far east of Russia, said Reuters.
The newspaper, citing unnamed sources, said ExxonMobil believes it overpaid profit taxes on its Sakhalin-1 oil and gas project. Russia reduced the profit tax in 2009 to 20 percent but ExxonMobil continued to pay at the earlier level of 35 percent after the project broke even in 2008, it said.
ExxonMobil, which owns 30 percent in Sakhalin-1, in Moscow declined immediate comment.
Kommersant quoted a source as saying that ExxonMobil had threatened to lodge a claim with the Stockholm arbitration court unless Russia cut its taxes for the project in line with the lower profit tax which applies across the country.
It said the claims amounted to "several billions of roubles". In 2014, the company overpaid by 10 billion roubles (USD163.7 million), the newspaper said, citing a source.
Russian Energy Minister Alexander Novak plans to meet Exxon's chief executive officer, Rex Tillerson, later on Wednesday. The newspaper also said that Tillerson would meet Finance Minister Anton Siluanov, Deputy Prime Minister Arkady Dvorkovich and Rosneft's Chief Executive Officer Igor Sechin.
As MRC informed before, Exxon Mobil Corp. shook off the chill of sanctions and continued to snap up drilling rights in Russia last year, giving it more exploration holdings in Vladimir Putin’s backyard than in the U.S. Taking the long view, Exxon boosted its Russian holdings to 63.7 million acres in 2014 from 11.4 million at the end of 2014, according to data from U.S. regulatory filings. That dwarfs the 14.6 million acres of rights Exxon holds in the U.S., which until last year was its largest exploration prospect.
ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC
ExxonMobil asks Russia to repay taxes
Thermoformer Plastic Ingenuity adding food packaging lines in Arkansas
The company is expanding its Maumelle, Ark., site through a USD2.5 million project that will add another 10 jobs to the current roster of 50 workers. Plastic Ingenuity is undertaking the expansion to increase production of plastic food packaging lines.
"This expansion will allow the Maumelle facility to become a larger player in the rapidly growing food segment of plastic packaging. The added space and new auxiliary equipment will increase our efficiency and bring more work to central Arkansas," said Plant Manager Jess Mellenthin in a statement.
A state economic development official pointed to the importance of paying attention to existing companies in creating growth. "We must continue to support Arkansas’s manufacturers by providing a trained workforce and the tools needed to grow in our state. We appreciate Plastic Ingenuity’s leadership for their decision to invest in Maumelle and its citizens," said Danny Games, interim executive director of the Arkansas Economic Development Commission, in a statement.
"Plastic Ingenuity’s expansion demonstrates the value and importance of our existing manufacturers," he said.
While the expansion is centered on food-related packaging, Plastic Ingenuity’s site in Maumelle also produces plastic packaging for the cell phone and electronics industry.
The company has been in Maumelle since 1993. Plastic Ingenuity is headquartered in Cross Plains, Wis., and has a manufacturing site in nearby Mazomanie, Wis. Other manufacturing sites, aside from Maumelle, are in Oxford, N.C., and Guadalupe and Monterrey, Mexico.
The company ranked No. 22 in Plastics News’ most recent survey of North American thermoformers, with sales of USD85 million.
MRC
PC imports in Russia grew by 81% in January-February 2014
Decrease in imports mainly resulted from unstable exchange rate. Domestic prices for imported granulate increased significantly. This made converters to switch to Russian-made polymers or secondary raw materials. Some small companies suspended operations.
Traders said that because of the deteriorating economic situation the terms of trade credits and debts have grown. The reason for this was the absence of working capital for the payments.
Buyers reduce procurement of feedstock and work only under contractual obligations. All market players try to avoid the accumulation of stocks.
During the reporting period, the supply of extrusion PC granules decreased by 87% and amounted to only 695 tonnes. Russia's imports of injection moulding polycarbonate were 510 tonnes, which was twice less than the volumes of last year.
Demand for imported bottle PC granules decreased by 78% and amounted to only 116 tonnes. There were no exports of Russian PC in January and February 2015. At the same time, the production of PC granules remained at the level of the previous year and amounted to 11,600 tonnes.
MRC
PP exports from Russia increased by 80% in January and February 2015
Because of the growing domestic production, which exceeded 1 mln tonnes in 2014 on the launch of sites in Omsk and Tobolsk (up 31% year on year) Russian producers continue to export PP to the foreign markets actively. February PP exports from the country (excluding exports to the Customs Union) were about 34,000 tonnes, compared with 23,100 tonnes in January. Total PP exports from Russia were 57,000 tonnes in the first two months of the year, compared with 31,700 tonnes in the same time a year earlier.
Traditionally, the main importers of Russian polypropylene were China and Turkey. During the reporting period, in these countries were shipped 23,200 tonnes and 9,600 tonnes respectively. Also quite large exports volumes of PP occurred for European countries: Belgium, Poland, Lithuania.
This year, many Russian PP producers significantly increased their export volumes, the exception were Stavrolen and Tomskneftekhim.
Traditionally, a leading supplier of PP in foreign markets was the Tobolsk-Polymer with a total volume of exports during the period of about 36,000 tonnes. Then followed Poliom with 8,300 tonnes and Nizhnekamskneftekhim with 3,500 tonnes.
MRC
LDPE prices began to rise in Russia again following a brief period of decreased
MOSCOW (MRC) - Supply of low density polyethylene (LDPE) in the Russian market was tight in the first half of March, which puts the pressure on the prices. But in the second half of the month the situation changed dramatically. LDPE prices began to rise, according to ICIS-MRC Price Report.
The first two months of the year was quite difficult for Russian producers of LDPE because of the low demand in the domestic market (seasonal factor, expensive credits) and falling prices in foreign markets. Significant oversupply of polyethylene in the domestic market in February made producers significantly increase export volumes.
But in the second half of March, the seasonal increase in demand and approaching shutdown at Kazanorgsintez led to an opposite effect - a rise in prices of low density polyethylene. Export contracts of Russian producers of LDPE have a major impact for the balance in the market. Russia's exports of LDPE in January (excluding the countries of the Customs Union) were 12,800 tonnes. February LDPE exports from the country increased practically two times to 25,500 tonnes. Russian producers have kept quite high exports volumes in March.
Last month's exports form Ufaorgsintez and Kazanorgsintez caused temporary interruptions in LDPE supply to the domestic market, however, this factor did not put pressure on the market and prices. But in mid-March, disruptions in supply began to affect prices.
The situation was aggravated by the fact that Kazanorgsintez (the second largest producer of LDPE in Russia) plans to shut its capacities for almost four-week maintenances from 15, April. The producer's two production sites will be shut sequentially until the end of April. All of these factors this week led to a rise in prices of low density polyethylene in the spot market.
The clients of Ufaorgsintez reported that on Monday, 16, March the company completed all of its March deals for LDPE. Gazprom neftekhim Salavat has also closed all March LDPE contracts. Kazanorgsintez delivers LDPE to the domestic market with disruptions this week.
Spot prices for 158 PE started from Rb75,000-78,500/tonne FAC, including VAT in the beginning of the week, but in the middle of the week prices increased by Rb2,000/tonne on a surge in demand. Some traders have temporarily suspended their sales.
MRC