Defense Contractor, Rosneft Team Up


Russian oil major Rosneft and Uralvagonzavod have begun cooperating to meet the defense contractor’s lubricant needs in the face of embargoes by foreign governments.

Under the deal, both companies pledged to form an alliance for development, production and application of high quality lubricating and other energy products in the manufacturing processes of UVZ. The deal was signed in May by Russian President Vladimir Putin, Rosneft head Igor Sechnin and Uralvagonzavod (UVZ) head Oleg Sienko.

Nizhny Tagil-based UVZ is a key Russian defense supplier manufacturing an array of battle tanks and armored vehicles as well as railway vehicles. Earlier this month, Rosneft and UVZ specialists prepared a strategy for supply of high quality lubricants and other petrochemicals. According to a Feb. 9 news release, they also discussed the possibility of improving domestic products so that they might replace products now being imported.

Rosneft and UVZ are both targets of sanctions imposed by the United States, the European Union and other western nations for Russias military actions in Ukraine.

Both companies [developed an] action plan that includes exchange of information and close collaboration between their technical specialists that will determine and classify the needed products used by the UVZs subdivisions.

The tanks and armored vehicles production as well as manufacturing of railway vehicles and freight cars represent key segments of UVZ, one of the largest scientific industrial complexes in Russia. It also produces containers, road-building machinery, tractors and consumer goods. The company incorporates more than 20 industrial enterprises, research institutes and design offices in Russia and their affiliates in Europe.

Rosneft is the second largest lubricant manufacturer in Russia, supply around 20 percent of the countrys lube demand. In 2013 it produced 588,000 metric tons of base oils and lubricants, according to the company. It is primarily specialized in production of industrial lubricants. The company operates three base oil plants located in Yaroslavl, Novokuibyshevsk and Angarsk, and four lube, additive and specialty plants located in Ryazan, Moscow, Novokuibyshevsk and Angarsk.

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