SAMRUK KAZYNA, RUSNANO & SINTEZ CAPITAL plan to invest 14 billion rubles in chemical industry

SAMRUK KAZYNA, RUSNANO & SINTEZ CAPITAL plan to invest 14 billion rubles in chemical industry

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19 January 2022

"Samruk-Kazyna" has signed an agreement on co-investment of 14 billion rubles with "RUSNANO Management Company" LLC and "Sintez-Capital" LLC to create a platform for the joint implementation of chemical projects in the Republic of Kazakhstan and the Russian Federation.

The new platform will allow the parts to launch chemical production in Russia and Kazakhstan. In particular, the technological chain will include constructing new plants and enterprises to produce oilfield chemicals and special absorbents based on methyl diethanolamine (MDEA).

The project will meet the industry's growing demand for highly efficient sorbents based on MDEA, necessary for purifying natural and process gases from acidic impurities, and forming the infrastructure, technical and investment solutions for capturing and utilizing CO2.

As Yernar Zhanadil, Managing Director for Investments, Privatization and International Cooperation - Member of the Management Board of Samruk-Kazyna JSC noted: "With this agreement, we are laying the foundation for long-term cooperation with the RUSNANO-SINTEZ Fund. We are interested in the joint implementation of chemical projects in Kazakhstan and Russia and the transfer of promising technologies to Kazakhstan."

"The development of small- and medium-scale chemical production is one of the priority tasks both in Russia and Kazakhstan. The chemical industry should significantly contribute to the economic development of our countries and the global agenda of decarbonization. Therefore, we expect that the joint implementation of the initiatives of the RUSNANO-SINTEZ Foundation will give an additional impetus to strengthening long-term partnerships between Russia and Kazakhstan," commented Vladimir Konovalov, Managing Director for Investments of RUSNANO Management Company.

Sergey Lugovskoy, General Director of the Sintez OKA Group: "We see perspective directions for cooperation in Russia and Kazakhstan. The increasing trend towards decarbonization opens up new markets for our products and technologies. We are now looking at the possibility of cooperation with Kazakhstan's industrial enterprises to separate CO2 from gaseous emissions. Our solutions and absorbents will provide efficient CO2 removal from synthesis gas, tail gas, or flue gas, helping plants to minimize their carbon footprint."

According to experts, cooperation in the chemical industry will be productive for several reasons:

- growing demand for gas cleaning reagents

- availability of effective and proven technology

- optimal raw material supply

- well-established supply chain

- prospects of the decarbonization of industries.

Earlier, at the St. Petersburg International Economic Forum-2021, Samruk Kazyna, RUSNANO Group, and Sintez OKA signed an agreement on the main terms of the contract. The final deal creates a regulatory framework for joint investment.