EU embargo on synthetic rubber, carbon black supplies from Russia enters into force

MOSCOW. July 1 (Interfax) - Restrictions on importing synthetic rubber and carbon black from Russia to the European Union, as prescribed in the tenth package of sanctions, have entered into force on Monday.

As reported, importing synthetic rubber and carbon black was limited by quotas from the moment the package was approved until June 30, 2024, specifically at 563,000 tonnes for synthetic rubber and factice and 752,500 tonnes for carbon, namely soot and other forms.

Kirill Bakhtin, an analyst at Sinara investment bank, does not consider the event substantially negative for synthetic rubber producers. "We estimate the share of rubber exports to Europe at 40% compared to 2022, and supplies to other markets have been growing over the past two years."

The SIBUR petrochemical holding became the largest producer of synthetic rubber in Russia after purchasing TAIF. Titan Group, Tatneft , and a number of other companies also produce synthetic rubber in Russia.

Marat Falyakhov, CEO of Nizhnekamskneftekhim , which is part of SIBUR and one of the world's largest synthetic rubber producers, in February 2024 said that the company currently supplies around 70% of its products to the domestic market and to the countries of the Customs Union, and the share of sales to Europe has reduced to 4%.