Lubricant additive production volumes in Russia fell sharply from 2001 to 2008. Domestic companies produced about 105,000 metric tons of lubricant additives in 2001, but the number fell to just 45,000 tons in 2008, according to Moscow-based Transpromservis, an additive distributor and oils trader.

Russia imported about 18,000 tons of lubricant additives in 2009, according to Leimeter. In spite of the significant import of lube additives, the Russian additives production has big potential, he said.

One reason for this potential could be the surplus additives capacity in Russia due to decreased demand during the past decade.The Omsk lubricants plant has 16,000 tons of additives output per year, but its not fully used. Volgograd [refinery] additives production was temporarily halted recently, while Novo-Kuibyshev is still operating, he revealed, noting the latter has a unique additives production line capable of reaching quality similar to that of western additives producers. The additives produced in the Novo-Kuibyshev plant are specially developed for lube applications that could work in cold or severe climate conditions, or are used for marine oils, he added.

The Omsk lubricants blending plant is operated by Gazprom Neft SM, the Russian energy giants lubricants arm. The Volgograd refinery is run by oil major LukOil, while the Novo-Kuibyshev plant is owned by state oil major Rosneft.

Russian oil companies would like to position themselves. Rosneft and our institute are busy in developing modern fuels, lubes and additives using the existent western know-how by cooperation with some companies and institutes, or even making better products, Leimeter pointed out.

In terms of Russian additives production in 2009, LukOil led with a 47 percent market share, according to the Volzhsky institute. Most of LukOils additives come from LLK-Naftan, the companys joint venture in Belarus. It is followed by Rosneft with a 15 percent market share. Gazprom Neft is next with a 15 percent market share of countrys additives production, followed by Slavneft at 12 percent. Independent producers in 2009 held about an 11 percent share of Russias additives market.

Leimeter said that in in 2009, Lubrizol held the biggest share of Russian additives imports at 30 percent, followed by Afton with 27 percent, Infineum at 23 percent and Chevron Oronite with 17 percent. The remaining 3 percent consisted of various smaller additives makers.

Since 2007 the Volzhsky Research Institute has been affiliated with Rosneft, but it has been in the midst of Russias oil refining industry since late 1960s.