Markets
The Russian economy has been expanding in line with the growth of oil and gas production and energy exports. Revenues from oil and gas exports have contributed to a sizeable trade surplus in Russia, and a significant improvement in the government's budgetary position. The worldwide economical downturn in 2008 hit Russia profoundly. Rouble dropped, oil- and gas prices decreased and private consumption dropped as of worsened financing conditions.
Russian trade balance (in USD b.)
In the last three years ahead of financial crisis, the Russian economy has continually posted strong growth rates, as illustrated by increasing GDP per capita and unemployment rates. Inflation increased significant up to almost 15% in 2008
Russian GDP per capita (in USD)
Development of Russian consumer prices (in %)
The Russian Federation is a major gas and oil exporter, and has by far the largest natural gas reserves in the world. (2006: Russian gas reserves of 48,000 billion m³ - followed by Iran with about 29,000 billion m³ of gas reserves). Export prices for Russian natural gas are linked under long-term contracts to international prices for oil products. Russian companies (e.g. Gazprom) supply natural gas to the domestic market at government-regulated prices. The average gas price for UCP Chemicals in 2007 was about EUR 46/1,000 m³. In comparison, European companies import Russian gas at significantly higher prices than Russian companies. (Average gas price in Germany in 2007: about EUR 200/1,000 m³)(1).
Russian oil production
The chemical and petrochemical industry is one of Russia's core industries, achieved stable growth and accounts for approximately 6% of Russia's gross domestic product.
UCP markets according to industrial customers and product groups
Legend:
| ••• | High percentage of UCP sales |
| •• | Medium percentage of UCP sales |
| • | Low percentage of UCP sales |
