The Russian Sibur is planning an IPO in Moscow by 2020: the CEO

ST PETERSBURG (Reuters) – Russia's largest petrochemical company, Sibur, is expected to make an IPO by 2020 and consider placing Moscow as the main trading venue, Sibur chief executive Dmitry Konov said. .

Previously, Sibur had declared that it would be better placed for an IPO, estimated at $ 3 billion last year, after the launch of its huge new plant located in western Siberia. , ZapSibNefteKhim.

Konov told Reuters on Thursday that Sibur had completed the construction of the plant, but that he would prefer not to predict when the plant will start at full speed.

"We will start production this year, there will be a release. But the exact moment to reach the projected capacity depends on many factors, "Konov said.

Speaking on the sidelines of an economic forum in St. Petersburg, Mr Konov said Sibur would prefer to be listed on the Moscow Stock Exchange than to also trade his shares on a foreign stock exchange. He declined to comment on a possible IPO price.

Speaking of the US-China trade quarrel, Konov warned that this could have a negative impact in the long run, while it could offer opportunities in the near future.

China decided in May to impose an additional 25% tariff on certain US products, including liquefied natural gas, soybean oil, peanut oil, petrochemicals, frozen vegetables and cosmetics.

Washington has promised to take revenge. This week, US President Donald Trump has threatened to hit China with tariffs on "at least" an additional $ 300 billion worth of Chinese goods, a move that has crowned trade tensions that have risen sharply since then. the end of the talks to end a trade war that reigned early May. . "Any trade war and a decline in international trade leads to weaker economic growth, which is a bad thing … In the short term, some could make money by changing (commercial) flows," he said. Mr. Konov.

"But it's a short-term win and a long-term loss."

In the midst of global trade problems, Sibur and China Petroleum & Chemical Corporation (Sinopec) signed several cooperation agreements earlier this week to join forces, including the transformation of natural gas into petrochemicals in Russia and China.

The agreements were signed the day Chinese President Xi Jinping met his Russian counterpart Vladimir Putin in Moscow and called him his "best friend". The two leaders should also speak to the same panel at the St. Petersburg forum on Friday.

Sibur and Sinopec also signed a distribution agreement for the supply of polyethylene to China from Sibur's ZapSibNeftekhim site, the plant that plays a leading role in its IPO projects.

"This agreement protects us from what we are doing in other priority markets," said Konov, referring to the polyethylene deal without giving details about the implications for Sibur's production figures.