Moscow – China Petroleum & Chemical Corporation (Sinopec), has completed its 10 percent minority investment in Russian petrochemical company Sibur as a strategic investor.
In a statement on 17 Dec, Sibur said the transaction would “deepen the cooperation between the two companies and create value for both”.
Sibur said the investment could also improve the market position of both companies, as well as “the strategic cooperation between China and Russia”.
Sinopec will have the right to nominate a representative for Sibur's board of directors as a strategic investor.
“Sibur’s vertically-integrated upstream and petrochemicals business model is highly complementary with Sinopec’s businesses,” said Wang Yupu, chairman of Sinopec.
Wang went on to say that the transaction was also in line with Sinopec’s objective to expand its petrochemical business overseas.
The two sides signed a strategic partnership agreement in September.
As a next step, said Sibur, the two companies are considering Sinopec’s participation in the Amur Gas Chemical Complex project as a strategic partner with Sibur.