December 14, 2016, Beijing - Silk Road Fund (“SRF”) and PJSC SIBUR Holding (“SIBUR”), as well as its shareholders, entered into definitive transaction agreements (“Agreements”) regarding SRF’s purchase of a 10% equity stake in SIBUR (“Transaction”). The parties' signing representatives present in Beijing were Wang Yanzhi, President of SRF, Leonid Mikhelson, Chairman of SIBUR’s Board of Directors, and Dmitry Konov, Chairman of SIBUR's Management Board. Andrey Denisov, Russia’s ambassador to China and Chang Zhenyong, Vice President of Sinopec also attended the ceremony.
According to the Agreements, the Transaction is expected to complete in January 2017, subject to Russia regulatory approvals. The Framework Agreement for the Transaction was signed in November 2016 in the presence of the leaderships of China and Russia.
SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, and is a leader in the Russian petrochemicals industry. SIBUR has been developing a petrochemical hub in the area of Tobolsk, with a major project, the ZabSibNeftekhim complex, now being implemented in the same area.
The Transaction is China’s largest investment in Russia in 2016, in alignment with Russia’s Far East development strategy. It represents SRF’s new contribution to the China-Russia energy cooperation, and more broadly, the two countries’ comprehensive strategic cooperative partnership.
As a medium to long-term development and investment fund, SRF focuses on outbound investment in infrastructure, resources and energy development, industrial capacity cooperation and financial cooperation under the “Belt and Road” Initiative. By jointly investing as a financial investor, SRF is dedicated to supporting Chinese companies to improve their processing and manufacturing capabilities on the industry chains, through complementary cooperation with other market players along the Belt and Road so as to achieve multilateral benefits.