Rustam Minnikhanov about TAIF projects: ''It is an example of good work with our partners''

TAIF has signed two major agreements with German companies

Rustam Minnikhanov about TAIF projects: ''It is an example of good work with our partners'' Photo: tatarstan.ru

Deutsche Bank will issue Nizhnekamskneftekhim a loan at 240 million euros for the construction of its own power plant. The document was signed in Moscow during the Russian energy week. Besides, TAIF intends to continue the cooperation with the German concern Siemens, with which a new agreement has been signed. Read more details in the report of Realnoe Vremya.

240 million euros for the construction of own power plant

Representatives of world energy companies and leading experts have attended the Russian energy week, the largest industry event, for the second consecutive year. TAIF Group chose this platform to sign two agreements with German partners. The first was a document between Nizhnekamskneftekhim and Deutsche Bank AG on issuing a loan at 240 million euros for the construction of own power plant.

The agreement in the presence of President of Tatarstan Rustam Minnikhanov, Director General of TAIF PSC Albert Shigabutdinov, Chairman of Siemens AG Joe Kezer, Deputy Director General of Corporate Governance, Property & Investments at TAIF PSC Ruslan Shigabutdinov, President of Siemens in Russia Alexander Liberov and Vice-President of Siemens in Russia Dietrich Meller has been signed by Director General of Nizhnekamskneftehim JSC Azat Bikmurzin and Global Head of Trade Finance and Regional Head GTB EMEA at Deutsche Bank AG Daniel Schmand.

The first tranche from German banks is expected in February 2019. Photo: tatarstan.ru

Six German banks — Deutsche Bank AG, UniCredit Bank AG, Bayerische Landesbank, Landesbank Baden-Wurttember, DZ BANK AG — will issue a loan until 2033. The deal was approved by the German Bundestag, and its guarantor was the export credit agency Euler Hermes.

''The loan term is 15 years and covers both the construction period of the power plant and the payback period of further operation. Let me note that the loan does not particularly affect the current financial activities of the company,'' Director General of TAIF PSC Albert Shigabutdinov commented at the press conference.

An autonomous power plant is to be built by 2021, the project on the basis of an EPC contract is implemented by the German concern Siemens, the agreement with which was signed in December 2017 in Munich. The power unit with a capacity of 495 MW is designed for the future — it will provide electricity to all enterprises of the petrochemical giant, including those which construction is only planned.

''Everyone knows that petrochemical production is very energy-intensive, and the cost of energy sources, electricity depends largely on your competitiveness and investment attractiveness. First, these are the most modern equipment with minimal fuel consumption. Second, it is reliability, that is, the power unit will be near the plant. Third, it is the possibility of using gases that appear in the process, that is, waste. Whatever way you look at it, it is a very modern project,'' President of Tatarstan Rustam Minnikhanov approved.

It has been the second loan agreement between Nizhnekamskneftekhim and Deutsche Bank this year. In May, at the St. Petersburg International Economic Forum, NKNK signed the document with Deutsche Bank to provide a loan of 807 million euros for 15 years for the implementation of the olefin complex project.

''We considered several international banks, including Russian ones, for lending to our own power plant. First, the choice fell on the German partners, because we already have one loan agreement with Deutsche Bank to provide financing for the construction of the ethylene complex. Accordingly, it was a continuation. Second, the bank offered very good conditions,'' Azat Bikmurzin, Director General of Nizhnekamskneftekhim, commented to Realnoe Vremya.

''We appreciate the reliability of TAIF and Nizhnekamskneftekhim and the professionalism of their management. Besides, we should support German industry and European companies in the export of their equipment and products. Finally, one of the most important points is that this agreement complies with the Equator Principles, and it is very important for us,'' said Daniel Schmand, Global Head of Trade Finance and Regional Head GTB EMEA at Deutsche Bank AG.

The cost of the entire project for the construction of the power plant is estimated at 352 million euros: the German banks will provide 240 million euros, the rest will be provided by Nizhnekamskneftekhim. The first tranche from the German partners is expected in February 2019.

Siemens is a strategic partner of our republic in many areas

The second agreement has been signed between TAIF and Siemens. Director General of TAIF PSC Albert Shigabutdinov and President of Siemens in Russia Alexander Liberov signed a cooperation agreement. For Alexander Liberov, it was the first signing in the new status — from 1 October, he is President of Siemens in Russia, replacing Dietrich Meller, who worked in this position for 12 years.

The strategic cooperation agreement between TAIF and Siemens has been in force since 2014, and the new document has become its supplement and continuation. Photo: tatarstan.ru

''Thank Dietrich so much. This agreement has been worked out by him during several years, through very hard work. It is almost comparable to the contract for the creation of a new station, because TAIF Group and Siemens Group switched to direct contracts. They have certain privileges for us, and we have them for them,'' commented Director General of TAIF PSC Albert Shigabutdinov.

The strategic cooperation agreement between TAIF and Siemens has been in force since 2014, and the new document has become its supplement and continuation. Over the years of the joint work, the German concern has supplied equipment and has been engaged in the reconstruction of production facilities at all leading enterprises of TAIF Group. The new document will allow to expand the cooperation on direct purchases of equipment, components and spare parts of Siemens by the enterprises of TAIF Group. In addition, by signing the new agreement, the partners confirmed their intention to continue the implementation of joint projects in the field of power engineering, automation of technological processes and integrated resource accounting, the introduction of modern electrical equipment for power supply systems of industrial enterprises, energy-saving technologies.

''The agreement should expand cooperation in the field of petrochemical complex, it is the improving of the efficiency of technological chains. Energy efficiency projects: these are digital control systems, i.e. digitalization and various systems, so the agreement should be the basis for deepening the cooperation with TAIF. We have a number of new projects that we will discuss,'' commented Alexander Liberov, President of Siemens in Russia.

''Siemens and TAIF Group have been in a very long partnership, and we are very grateful that we can expand our partnership forward. Today we have signed the agreement and discussed with Mr. Shigabutdinov that we are going to upgrade the efficiency of TAIF power plants, so that TAIF Group is also well prepared for the future,'' Chairman of Siemens AG Joe Kezer told Realnoe Vremya.

Over the years of the joint work, the German concern has supplied equipment and has been engaged in the reconstruction of production facilities at all leading enterprises of TAIF Group. Photo: Ksenia Zharkova

''Siemens is a strategic partner of our republic in many areas,'' Tatarstan President Rustam Minnikhanov said after the signing. Germany remains one of the largest trade and economic partners of the republic: in 2017, the foreign trade turnover between Germany and Tatarstan increased by 74% and amounted to almost 2 billion dollars. The signed agreements will strengthen the cooperation not only between the companies, but also between the republics.

''It can be a highlight in our relationship. We see that there are negative actions everywhere, but here, I don't want to jinx it,'' Rustam Minnikhanov knocked on the table. ''It is an example of good work with our partners. I am very grateful to the German leadership for the approval of the project, Deutsche Bank and our partners — Siemens. We fully support these initiatives.''

By Ksenia Zharkova