Putin orders possible restrictions on Tetra Pak-like packaging from Asia to support local cos

President Vladimir Putin has ordered the Russian government to work out mechanisms to curb imports of analogs of Tetra Pak packaging from Asia taking into account tools offered by the World Trade Organization, as per Interfax.

Putin issued the order at a meeting with representatives of Russian business circles after JSC Packaging Systems CEO Alexander Krivolapov asked him to consider restricting imports of Tetra Pak packaging from Asian countries, including China and India.

"One of the fairly difficult issues for us is growing competition with import suppliers, primarily from Asia. The situation here is such that we're carrying out a very intensive program for import substitution of raw materials, working with all the main suppliers, but the process takes time. And now there is a situation where duties on imported raw materials that are used regularly increase, while duties on imported products with which we compete remain at a fairly low level," Krivolapov said.

He said Russian companies are now actively launching new facilities to produce packaging for juices, baby food and so on, which will make it possible to cover the domestic market's needs "already in a couple of years." But with increasing competition from Asian Tetra Pak packaging, there is a risk that these new plants will be underused, Krivolapov said.

Putin proposed that the Economic Development Ministry consider imposing additional restrictions on imports of these goods.

Economic Development Minister Maxim Reshetnikov recalled that Russia has WTO obligations that prohibit it from imposing an import duty of more than 5% on packaging and the maximum duty is already in effect.

"We trade with China [...] We're in the WTO and they're in the WTO, so we're very careful about this. If these were supplies from Europe, we would now immediately impose duties [on imports] from unfriendly countries. It's clear that the WTO already doesn't work there in this regard. But since it is Asian countries, with whom we're increasing trade, Vladimir Vladimirovich, we need to observe WTO rules there," Reshetnikov said. As an alternative, he proposed launching an antidumping investigation into Tetra Pak packing imports.

"Within the WTO there are more delicate mechanisms that one must know how to use," Reshetnikov said.

"Well then, there are delicate mechanisms. That's what I'm talking about. You need to work with them. All the mechanisms are there," Putin responded.

He also said that WTO members are generally inclined to manipulate its mechanisms. "We'll work here with you. They are such big specialists, all our competitors, such masters, they manipulate all these percentages," he said.

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Saudi state oil giant Aramco is exploring potential asset sales to free up funds, as it pursues an international expansion and weathers lower crude prices, as per Hydrocarbonprocessing.

Aramco is the world's largest oil-producing company and the main source of Saudi state revenue. The firm will cut dividend payouts by nearly a third this year as lower oil prices hit its income.

The company has asked investment bankers to pitch ideas for how to raise funds from its assets, the people said. They declined to say which assets could be sold or name the banks involved.

Aramco is looking to improve efficiency and cut costs, according to two other people with knowledge of the matter, and an option under consideration would be asset sales, one of them said. The four sources declined to be named because they are not authorized to speak to media.

Aramco is the engine of the Saudi economy and its sprawling business includes units for aviation, construction and sports. It has retained majority stakes during previous asset sales such as its deals around its pipeline infrastructure.

The Saudi government is putting pressure on its industries to improve profitability amid low crude prices and as it spends its hydrocarbon wealth on new sectors to cut reliance on oil.

The kingdom faces a widening budget deficit with the International Monetary Fund saying Riyadh needs a price of oil of over $90 per barrel to balance its books compared to prices of around $60 per barrel in recent weeks.

Aramco has in recent years made a push to grow its global footprint, including investing in Chinese refineries, Chilean fuel retailer Esmax and U.S.-headquartered LNG firm MidOcean.

The Saudi company said last week it signed 34 preliminary deals potentially worth up to $90 billion with U.S. firms following President Donald Trump's visit to the kingdom.

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The eight OPEC+ countries that have been voluntarily curbing oil production by 2.2 million barrels per day since 2023 have not yet discussed the possibility of an accelerated increase in output in July, Russian Deputy Prime Minister Alexander Novak said on the sidelines of the Caucasus Investment Forum, as per Interfax.

"No, we haven't discussed anything," he said when asked if the eight OPEC+ countries have actually begun discussing raising production by 411,000 bpd. "I don't know anything about this," Novak said.

The countries are supposed to discuss the level of production in July in an online meeting on May 31, and a full-fledged meeting of all OPEC+ ministers will be held on May 28.

Novak said the quotas of all member countries will not be discussed at the meeting. "We're not revising quotas for all participants, after all. We're talking only about the voluntary reductions that eight countries took on themselves in 2023. We've only revised them recently, meaning these are not quotas for all of OPEC+," he said.
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Despite weaker energy values, SM prices fell in Asia on Thursday, as per Polymerupdate.

An industry source in Asia informed a Polymerupdate team member, 'Prices were assessed lower on the back of weak buying activity in the Asian markets.'

On Thursday, FOB Korea SM prices were assessed at the USD 890-900/mt levels, down USD (-15/mt) from Wednesday's assessed levels.

CFR China SM prices on Thursday were assessed at the USD 900-910/mt levels, a fall of USD (-15/mt) from Wednesday.

Meanwhile, upstream benzene prices on Thursday were assessed at the USD 710-720/mt FOB Korea levels, a day on day drop of USD (-15/mt).

In plant news, Hanwha TotalEnergies Petrochemical has brought on stream its No.2 Styrene monomer (SM) unit on May 14, 2025 following a turnaround. The unit was shut for maintenance on April 10, 2025. Located in Daesan, South Korea, the No.2 unit has a production capacity of 650,000 mt/year.

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Russian Deputy Prime Minister Alexander Novak and Bahrain's Oil and Environment Minister Mohamed bin Mubarak Bin Dainah discussed cooperation under the OPEC+ deal as a guarantee for ensuring the stability and predictability of the world oil market and agreed to coordinate relations in this area in future, the Russian government's press service reported Interfax.

"The decisions made by participating countries are aimed at balancing the oil market amid economic challenges," the statement said.

The talks also covered the terms for supplies of Russian energy resources to Bahrain, as well as possibilities for joint work on oil and gas exploration and production on Bahrain's shelf with the participation of Russian companies.

Bahrain and Russia are both participants in the OPEC+ deal.

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