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Comments of ministries on the project of the Eastern petrochemical company are presented to the President

According to Kommersant, the conclusions of the relevant ministries on the financial model of the Far Eastern project of Rosneft - the Eastern Petrochemical Company (VNHK) - worth more than $ 18 billion were presented to Vladimir Putin.

The project is a complex of three phases. The first one is designed for processing 12 mln tons of oil per year, the second is petrochemical, its capacity is 3,4 mln tons, the third one will increase processing by another 12 mln tons, petrochemistry - by 2,6 mln tons. . It is supposed to take from the budget, 659,5 billion rubles. - from monopoly investment programs. The refund is proposed to be made through compensation payments to Rosneft in the amount of 92,8 billion rubles. for 28,4-137,5 years. The internal rate of return (IRR) of the project is estimated at 20% with state support and 49% without it.

Energy Minister Alexander Novak notes in his response, sent in early April, that capex for infrastructure for the first and second queues is overstated. All counterparties for compensation payments are also not defined.

The Ministry of Finance is demanding a cash flow balance due to its negative value in 2011-2021. The refusal of state support will not have a serious impact on the effectiveness of the project, according to the ministry.

The letter of the Ministry of Economy signed by Deputy Minister Sergei Belyaev at the Ministry of Energy notes that it is impossible to estimate the sales of petroleum products up to 2030 due to the lack of market analysis. The ministry also requires clarification of sources of funding and explanations of the planned costs of maintaining capacity, compensation payments. The ministry is not sure about the need to introduce the infrastructure before 2020, when the second phase of the VNHK is to start working. At the same time, in general, the Ministry of Economics supports the project, the department said.

The report to the president and the government speaks about the feasibility of the project and the possibility of its state support through the state program of socio-economic development of the Far East and the Baikal region and at the expense of investment programs of monopolies, sources in the Ministry of Energy note. At the same time, the ministry proposes to reduce infrastructure costs. 

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