Rustam Minnikhanov in Nizhnekamsk: There is no doubt we will handle these projects as well

Tax manoeuvre increased the raw material price

The floor was given to Rushan Shamgunov first who has been heading TAIF-NK for about 2 years. He started his speech mentioning the influence of the crisis, low dollar value and strengthening the regime of tax management of the economy of the enterprise. Such a beginning didn't betoken optimistic results that had been showed by the factory before.

The suspense proved to be correct: the tax manoeuvre increased raw material price, petroleum, and if in Russia TAIF-NK is practically the unique company that refines purchased petroleum of Tatneft, not its own oil, the financial result of the company has decreased by 7bn rubles for nine months. As the head of the company complains, it is the direct consequence of the rise in raw material price that outstrips the price of the end product. He notes that only due to benefits obtained with the support of the President of the republic, the enterprise managed to escape losses. However, the gross profit losses made 3 billion rubles.

The summary of the financial results for 9 months does not please the administration of the company: figures decreased by 5bn rubles, tax liabilities respectively dropped

These financial results were caused by the continuous growth of transport tariffs on transport of commercial products, which increased expenses of the company by 2bn rubles. The summary of financial results for 9 months does not please the administration of the company: the figures decreased by 5bn rubles, tax liabilities, including to the Treasury of the republic, respectively dropped.

To maintain railway tariffs and refine the light petroleum only

By financiers' preliminary calculations, TAIF-NK will have got 153bn rubles of revenue and 9,5bn rubles of profit from operating activities by the end of the year. For instance, in 2014 TAIF-NK produced and realized products equal to 132bn rubles, and net profit was almost 11 billion rubles.

It comes as no surprise that in these conditions the company is pinning its hopes on the Heavy Residues Deep Conversion Complex: it is a unique complex, which will be launched in a year, that will allow TAIF-NK to make a 17bn profit in the form of high-quality and highly liquid light petroleum products like gasoline, diesel fuel and naphtha (a straight-run gasoline) refined from mazut and vacuum gas oil. The technology used to obtain these products had been used nowhere else. Later the President would point out that this step, in fact, became revolutionary in the international sector.

Now the investment in the projects is $1,2 billion (54bn rubles), but the high profit of the Heavy Residues Deep Conversion Complex (17 billion rubles), plus the profit from the active factories soon will allow to compensate all expenses of the petroleum refining plant.

The company is pinning its hopes on Heavy Residues Deep Conversion Complex: it is a unique complex, which will be launched in a year, that will allow TAIF-NK to make a profit of 17 billion rubles a year

Still, the company needs the support of the republic and the government as well. Rushan Shamgunov asked Rustam Minnikhanov his assistance with solving two burning problems at federal level. To start with, he emphasized the necessity of the light petroleum at home, while sour crude oil is ought to be exported. Secondly, it was an offer to maintain railway tariffs to transport products during 5 years, which will enable the company to invest money in the realization of investment projects, not tariff payments. Besides, the head of TAIF-NK asked to support the factory at the level of the republic introducing deeds by means of which it would be possible to obtain property tax benefits concerning the project of the Heavy Residues Deep Conversion Complex. In addition, it is necessary to apply the action of the Family Support Programme of the republic to Corporate Housing Programme, when a family that buys a house using the Social Mortgage on House is given 200,000 rubles for a child.

Record proceeds of NKNKH

Frankly, the report of the director general of NKNKH, the next speaker, was more optimistic. For 9 months, the volume of goods sold has increased by 16 billion rubles in comparison with last year's period. Azat Bikmurzin noted that net profit increased more than 3,5 times.

Although this year cannot be called immaculate. NKNKH had a first-hand experience of the confluence of all negative factors in the world economy: fall in world oil prices, slump in natural rubber prices, consequently, it referred to the cost of synthetic rubber and, finally, weak national currency.

A big part of Azat Bikmurzin's report was devoted to the technical and technological innovations, mastering new brands and types of production, results of energy conservation and other aspects of the petrochemical giant's activity

Exports reached 54 billion rubles, that is to say, almost half of the total revenue (45bn rubles for 9 months in 2014), the total volume in which belongs to the rubber (78%). The indicator of the realization of goods in the domestic market significantly grew by 8% due to escalating demand for plastics that inserted its 33bn rubles to the money box (58% of the total revenue of the domestic market). But the sale of rubbers accounts for only 8%.

A big part of Azat Bikmurzin's report was devoted to technical and technological innovations, mastering new brands and types of production, results of energy conservation, and other aspects of the petrochemical giant's activity.

A big part of Azat Bikmurzin's report was devoted to technical and technological innovations, mastering new brands and types of production, results of energy conservation, and other aspects of the petrochemical giant's activity.

Nevertheless, he went back to financial results. The revenue is growing as well as tax liabilities. From the beginning of the year NKNKH paid about 8bn rubles to the consolidated budget of Tatarstan (3,5bn rubles for 9 months in 2014), 640 million of them go to the municipal budget. In 2015, Nizhnekamsk will get approximately 800m rubles of allotments. No industrial enterprise on the territory of the district of Nizhnekamsk invests such sums to the municipal treasury.

Forecasts for 2015: a profit of 160bn rubles will be the result of the year for NKNKH, and net profit is going to be a record again (29bn rubles).

Mega project of the ethylene complex

NKNKH already knows where it will invest this sum. Big financial expenses will be necessary for the realization of one mega project of TAIF more since 2016: an ethylene complex with annual capacity of 1,2 million tonnes, the construction of which is divided in 2 stages, one of each is 600,000 tonnes, and building a plastic factory. The first stage of the construction, according to the development strategy of the company, will be over in 2019.

These plans are very big and serious. Indubitably, both projects require the federal support and help of the republic. But I'm convinced that there is no doubt that we will handle these projects because, at the present, we have been coping with all difficulties and problems.

The President of the republic drew the conclusions of both speakers' speeches. He pointed out that these factories are very important not only for the region but also for Russia. The President noted that TAIF and the companies of the Group meet the 25^th anniversary with ambitious plans calculating their further development. Rustam Minnikhanov was impressed by the scale of the Heavy Residues Deep Conversion Complex. For instance, Olefin Plant, which will be built in 5 years, was compared with the whole territory of Nizhnekamskneftekhim. In addition, the President emphasized social programmes like providing workers with dwellings. As he mentioned, there will be built over 6,000 flats for workers of the TAIF GC and that, 'such tasks had never been solved for such a short period of time'.

'These plans are very big and serious. Today we worked well, discussed the technologies, the consequences and the difficulties. We studied everything in detail, and it was very stimulating. Undoubtedly, both projects require the federal support and the help of the republic. But I'm convinced that there is no doubt that we will handle these projects because, at the present, we have been coping with all difficulties and problems,' the President of the Republic of Tatarstan ended his speech on an upbeat note and presented 11 workers of Nizhnekamskneftekhim and TAIF-NK with government awards.