Yamal region is special

Of course, Yamal cannot avoid the overall economic environment influence. The region is the main domestic and export gas supplier, and gas prices are linked to oil ones. Yet the region remains one of the main Russia's budgetary funds sources. We rank 3rd among budget contributors among constituencies of the Russian Federation.

We manage to maintain high living standards despite the current hardships. The average Yamali income is twice as high as average Russian, mostly thanks to fuel & energy sector companies.

Carbohydrates recovery industry has always been the main Yamali tax contributor. But the latest events showed how susceptible to weakness economies - including that of Yamal - become due to excessive reliance on such a policy. This is why we are shifting to development of transport infrastructure and industries (including ones concerned with carbohydrates processing).

Major investment projects are currently being implemented in the region: the “Yamal LNG” gas liquefaction plant and Sabetta seaport are currently being constructed in the north. The total cost of the 2 projects is estimated at 27$ billion. The “SIBUR” company invested 16$ billion in Vingapur gas refineries modernization. The “Zapolyarie-Purpe” oil pipeline is expected to be launched in the latter half of the year. It will allow for new Yamal fields (Pyakyakhinskoe and Vostochno-Messoyakhskoe) connection to the “Transneft” main oil pipelines network, thus enabling mid-term doubling of oil recovery in Yamal.

Yamal is a special region. Its development path was determined by not only sought-after subsoil natural reserves, but favorable investment environment as well. Investments into our Region’s processing industry grew more than fourfold. The processing industry’s share in our Region’s industrial sector amounts to 25%. It used to be half as much (12%) not too long ago. The Region governor assigned us the task of increasing this number to 50%. This way, only half of our industries will depend on production, while other half will be concerned with manufacturing.

The Novourengoysky gas-derived chemicals integrated plant (30 kilometres away from the City of Novy Urengoy) construction project finally being at the lock-up stage is symbolic. It will be a major enterprise worth about 3$ billion in investments. Demand for its products (polyethylene and ethylene) has been consistently high both in Russia and Asia in recent years. For example, global polyethylene consumption grows 3-4% a year. This means our products will remain in demand. One should also consider our production facilities are located near the raw materials fields, allowing for drastic reduction in production cost.