MOSCOW—China Petroleum and Chemical Corp. (Sinopec), has completed its 10-percent minority investment in Russian petrochemical company Sibur to serve as a strategic investor.
Sibur said in a statement that the transaction would “deepen the cooperation between the two companies and create value for both.”
Sibur said the investment also could improve the market position of both companies, as well as “the strategic cooperation between China and Russia.”
Sinopec will have the right to nominate a representative for Sibur's board of directors as a strategic investor.
“Sibur's vertically-integrated upstream and petrochemicals business model is highly complementary with Sinopec's businesses,” said Wang Yupu, chairman of Sinopec.
Wang said the transaction was in line with Sinopec's objective to expand its petrochemical business overseas.
The two sides signed a strategic partnership agreement in September.
As a next step, said Sibur, the companies are considering Sinopec's participation in the Amur Gas Chemical Complex project as a strategic partner with Sibur.