Within the XVIII St. Petersburg International Economic Forum, Rosneft President, Chairman of the Management Board Igor Sechin and the Minister of the Development of the Russian Far East Alexander Galushka signed a cooperation agreement in the region of socio-economic development of the Far East regions.

According to the agreement, the parties intend to develop cooperation within the Primorsk Territory for the implementation of investment project for the construction of oil refining and petrochemical plant with the working capacity up to 30 million per year of raw hydrocarbons - the Far Eastern Petrochemical Company (FEPCO) - on the terms of public-private partnership.

The agreement reflects mutual interest of the parties in the realization of the Eastern Petroleum Company Project aimed at socio-economic development of the Far Eastern Federal District.

To create conditions for implementation of Eastern Petroleum Company project, which are aimed at improvement of investment climate, the parties agreed - as required by the Russian law - to evaluate the issue concerning measures of State support, particularly, by including certain objects of outer infrastructure and objects of social infrastructure under FEPCO project into a project of the Federal target Program ‘Economic and social development of the Far East and Baikal region for a period until 2025’.

According to the Company's predictions the implementation of the FEPCO project will allow to achieve a positive effect concerning deficiency high-quality motor fuels in the region, will promote the development of the Russian market of oil production and creation of a modern petroleum cluster in the region, provide a synergy and multiplicative effect associated with the increase of output in related sectors (production of plastics and plastic material products, energy, and plants serving FEPCO).

The implementation of the project will provide additional income for the budget of the Russian Federation, creation of new workplaces, renovation and development of social, energy, transport, and logistic infrastructures, revival of trade and economic ties, and increase of investment attractiveness of Primorsk Territory and the Far Eastern region in general.

Commenting on the signing, Igor Sechin highlighted: “The Far East is an area of strategic interests for Rosneft. The Company implements a lot of major projects here, which will significantly contribute to priority development of the Far Eastern Federal District both in economy and social terms. The Far East Petrochemical Company is one of our major projects, and we expect powerful multiplicative effect, which will enable the creation of up to 100 thousand new workplaces”.