Investigation Launched in Russia Regarding Chemical Products Imported from Azerbaijan

The Eurasian Economic Commission (EEC) has initiated an anti-dumping investigation into the high-density polyethylene, polypropylene, and its copolymers imported from Azerbaijan and Turkmenistan. The cases have been initiated by Russia's largest petrochemical company, Sibur, along with its subsidiaries Kazanorgsintez and Nizhnekamskneftekhim.

The anti-dumping margin for polyethylene imported from Azerbaijan has been set at 19.9%, while for polypropylene it stands at 33.85%. For polypropylene and its copolymers imported from Turkmenistan, the margin is 13.55%. According to the documents, such supplies are causing losses to the Russian petrochemical sector.

Within 60 days of the investigation's start, the EEC will accept comments and information from interested parties. They have 45 days to request public hearings. The outcomes of the investigation could lead to the imposition of duties, quotas, or even a complete ban on imports.

Last year, plastic recyclers appealed to the government with the opposite request—to ease the importation of raw materials and to cancel the 20% anti-dumping duty on polyethylene imported from Uzbekistan, which has been in effect since 2022, as well as to eliminate all import duties on polymer raw materials, currently at 6.5%. At that time, the discussion mainly revolved around specific types that are not produced in Russia.

However, imports from Azerbaijan and Turkmenistan also include products available from Russian companies. Sources have confirmed that in many cases, the imported raw materials are supplied at lower prices than those of Russian counterparts. Sergey Frolov, managing partner at NEFT Research, also states that Russia produces the entire range of polyethylene that is released in Azerbaijan.

According to the expert, the supplies at dumping prices have mainly occurred in border regions of Russia. He believes that even a complete closure of imports would not significantly affect the Russian market since Sibur would redirect part of the low-margin Asian spot supplies to the domestic market. For Azerbaijan, the loss of the Russian premium market would pose a significant problem, the expert adds.

Meanwhile, Anzor Uzdenov, owner of the Grand Master film production company, expresses concern that cheaper raw materials from Azerbaijan, after being redirected to other markets, may lead to the influx of finished products into Russia, which local recyclers would have to compete against.