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Historical Development and SIBUR-TAIF Integration

Historically, the development of the oil refining and petrochemical industry in Tatarstan was determined by its strategic economic importance to Russia. Possessing huge reserves of hydrocarbon feedstock, the Republic of Tatarstan – a leader in oil production in the USSR – for half a century supplied crude oil and petroleum products to other regions of the Soviet Union and abroad. However, the lack of advanced processing and petrochemical facilities limited value creation within the regional economy and constrained the development potential of the entire country's downstream sector.

To address this gap, TAIF PSC established its refining and petrochemical branch TAIF-NK in the Nizhnekamsk industrial hub in 1997 (reorganized as CJSC TAIF-NK in 1998, then converted to Public Joint Stock Company in 2006). TAIF-NK developed intensive work on the design and construction of an integrated oil refining and petrochemical complex in Nizhnekamsk, transforming the region into a major downstream processing center.

Initially operating a rented Crude Oil Distillation Unit (CDU/VDU-7), TAIF rapidly modernized the production facilities at its own expense and subsequently acquired full ownership of the plant. Over the following decades, Nizhnekamsk evolved into one of Russia's largest integrated petrochemical complexes, encompassing:

• TAIF-NK refinery with crude oil processing and conversion units
• Nizhnekamskneftekhim (NKNH) petrochemical complex producing olefins, polymers, and specialty chemicals
• Nizhnekamskshina tire manufacturing facilities
• Extensive infrastructure connecting refining, petrochemicals, and downstream industries

SIBUR-TAIF Merger: Creating Russia's Petrochemical Champion

At the end of April 2021, the two largest oil and gas chemical companies in Russia – SIBUR and TAIF – announced a strategic merger. Under the terms of the agreement, a combined company would be created on the basis of PJSC SIBUR Holding, consolidating SIBUR's extensive petrochemical assets with TAIF's refining and chemicals infrastructure.

On 24 September 2021, SIBUR and TAIF entered into a definitive agreement finalizing the creation of a combined entity that would leverage the complementary facilities of PJSC SIBUR Holding and the TAIF Group to create the largest petrochemical company in Russia and one of the biggest integrated players in the world.

Strategic Rationale and Integration Benefits

The SIBUR-TAIF merger delivered significant strategic advantages:

• Vertical integration: Combining TAIF's upstream refining capabilities with SIBUR's petrochemical and polymer leadership
• Feedstock security: Direct integration of olefin feedstock from TAIF's Nizhnekamsk complex into SIBUR's polymer value chains
• Geographic optimization: Leveraging TAIF's Tatarstan production base alongside SIBUR's facilities across Russia
• Technology synergies: Pooling R&D resources, including SIBUR's NIOST center and TAIF's process development capabilities
• Scale advantages: Creating a petrochemical giant with combined revenues exceeding $15 billion and production capacity across the full hydrocarbon value chain