Cyclic hydrocarbons market in Russia

Earlier Report Observations

The Russian cyclic hydrocarbons market opened the period with robust production of nearly 6.0 million tonnes in 2018, supported by state-led investment programs, the launch of new production capacities in the Volga Federal District, and updated regulatory standards for product labeling and quality control. These developments fostered an initial market volume of 5.4 million tonnes. However, from 2019, international sanctions and geopolitical tensions began to pressure export channels, while the COVID-19 pandemic in 2020 introduced supply chain disruptions, though government subsidies and tax incentives helped production recover that year.

The regulatory landscape evolved significantly with the expansion of the state carbon units registry in 2021 and its formal launch in September 2022, establishing a new framework for greenhouse gas emissions. Coupled with intensified sanctions that further reduced export opportunities, these factors contributed to a marked contraction in both production and market volume, which fell to around 4.1 million tonnes by 2022. The market stabilized near this level in 2023 at 4.1 million tonnes, aided by the entry of new domestic players, continued investment in modernization, and the growth of the B2G segment alongside stricter packaging and traceability rules.

Production rose to 4.4 million tonnes in 2024, corresponding to a market volume of 4.3 million tonnes, but preliminary data for 2025 indicates a decrease in output to 4.0 million tonnes.

Production cyclic hydrocarbons in Russia

In kind, 2018-2021, K t

In 2021, Russia produced 4 808 thousand tonnes of cyclic hydrocarbons, marking a 16.7% decrease compared to the previous year. Looking at the period from 2018 to 2021, production fell by 19.3%, which translates to an average annual decline of 6.9%. The only year that saw growth was 2020, with a modest increase of 1.8%.

Annual dynamics of production in Russia in kind, 2018-2021, K t

Exports cyclic hydrocarbons from Russia

Exports in kind, K t

Russia's exports of cyclic hydrocarbons reached 304.1 thousand tonnes in 2021, representing a sharp decline of 38.6% from the previous year. Over the four-year span from 2018 to 2021, exports dropped by 45.2%, averaging an 18.2% annual decrease. The sole positive year was 2020, when exports grew by 3.6%.

Annual dynamics of product's exports from Russia in kind, 2018-2021, K t

From 2018 to 2021, Finland, Belarus, and the Netherlands were the primary destinations for Russia's cyclic hydrocarbon exports in volume terms. Finland accounted for 67.2% of exports, Belarus for 8.1%, and the Netherlands for 7.7%. Together, these three markets represented 82.9% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Russia in kind, 2018-2021

Exports in value, M $ US

After two consecutive years of decline, Russia's cyclic hydrocarbon exports in value terms rebounded in 2021. The total export value stood at 286.8 million US dollars, showing a 9.5% increase compared to 2020. However, over the full 2018-2021 period, exports decreased by 47.2%, with an average annual decline of 19.2%. The lowest point was in 2020 at 261.9 million US dollars, which also saw the steepest drop of 34.0%.

Annual dynamics of product's exports from Russia in value, 2018-2021, M $ US

Between 2018 and 2021, Finland, Belarus, and the Netherlands formed the core group of markets for Russia's cyclic hydrocarbon exports in value terms. Finland represented 67.3% of export value, Belarus 8.2%, and the Netherlands 7.3%. Collectively, these three countries accounted for 82.8% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Russia in value, 2018-2021

Imports cyclic hydrocarbons to Russia

Imports in kind, K t

Import volumes of cyclic hydrocarbons into Russia showed significant volatility from 2018 to 2021. The lowest point was in 2018, while imports peaked in 2021, creating a 12.1-fold difference between these years. In 2021, imports reached 114.7 thousand tonnes, surging by 132.7% compared to 2020. The largest decline occurred in 2020 with a 2.6% drop, while the most substantial increase was in 2019 at 434.2%.

Annual dynamics of product's imports to Russia in kind, 2018-2021, K t

From 2018 to 2021, Ukraine, Belarus, and Kazakhstan were the main sources of cyclic hydrocarbon imports into Russia in volume terms. Ukraine supplied 39.1% of imports, Belarus 29.9%, and Kazakhstan 13.0%. Together, these three countries accounted for 82.0% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Russia in kind, 2018-2021

Imports in value, M $ US

The value of cyclic hydrocarbon imports into Russia displayed considerable volatility between 2018 and 2021. The lowest import value was recorded in 2018, while 2021 saw the highest, resulting in an 8.6-fold gap. In 2021, imports totaled 123.3 million US dollars, representing a dramatic 283.3% increase over the previous year. The largest decline occurred in 2020 with a 22.8% drop.

Annual dynamics of product's imports to Russia in value, 2018-2021, M $ US

During the 2018-2021 period, Ukraine, Belarus, and Kazakhstan emerged as the primary sources for Russia's cyclic hydrocarbon imports in value terms. Ukraine accounted for 33.5% of import value, Belarus for 23.2%, and Kazakhstan for 9.7%. Together, these three countries represented 66.4% of total import flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Russia in value, 2018-2021