The Government of Ukraine and Lukoil signed a memorandum on the resumption of work "Karpatnaftohima"

The Cabinet of Ministers of Ukraine and OJSC "LUKOIL" (Russia) signed a memorandum of resuming LLC "Karpatnaftokhim" (Kalush, Ivano-Frankivsk region)., Controlled oil company, said Deputy Prime Minister Yury Boiko on air "Channel 5" on Thursday evening.

According to him, the memorandum approved by the Government on April 10.

"Yesterday (Wednesday - IF) the government adopted a memorandum on cooperation with" LUKOIL "to launch" Karpatnaftohima "- is a large enterprise that is running about 4 thousand people, and which provides a significant increase in the gross national product," - said Yu . Boyko.

Deputy Prime Minister said that the signing of a memorandum imposes obligations on the owners to launch a company for three months and reach the level of industrial production, which had to suspend its activities.

"In turn, the government has committed itself to support the (enterprise - IF) through the establishment of protection of the domestic market - the customs protection of raw materials and finished products, which is on the imports from other countries, and some preferences regarding tariff policy, which will also be given out on a normal production cycle "- it will drown.

Boyko said that in the anti-crisis program for the resumption of the 2013 production at the five major industrial enterprises, three of them have already returned to work (Zaporozhye and Stakhanov ferroalloy plants and Odessa Refinery - IF).

"We still have one company - Lisichanskiy refinery venture with the owners of which (" Rosneft "- IF) we are also holding talks to launch," - said Deputy Prime Minister.

Ltd. "Karpatnaftokhim", the largest petrochemical company established 29 October 2004 on the basis of capacity "Oriana". It was founded by JSC "Lukor" (Kalush, Ivano-Frankivsk region.) With a share of 24% and LUKOIL Chemical B. V. (Netherlands) - 76%.

"Karpatnaftokhim" in 2011 started production of PVC with a capacity of 300 thousand tons per year, but in September 2012 it stopped due to a problem with the VAT refund, the lack of protection to domestic producers from imports, including the issue of cheaper raw materials. According to "Lukoil" to improve the situation should hold an anti-dumping investigation concerning imports of PVC from the U.S., enter the 6.5% duty on imports of PVC, abolish duties on imports of Russian gas and oil feedstock for ethylene production on "Karpatnaftohime."

In October-November 2011, a group of deputies to the parliament made laws on of 5% duty on imports of PVC in Ukraine and to abolish excise duty on the import of liquefied natural gas and diesel fuel with a sulfur content greater than 0.2% that are used as raw material for pyrolysis petrochemical production (ethylene, propylene, benzene, vinyl chloride, polyethylene). However, these projects are still pending.

At the end of February 2013 Deputy Prime Minister Yuriy Boyko said on negotiating with the "LUKOIL" and a preliminary agreement on the resumption of work "Karpatnaftohima" in 2013.