Substance dependence: Russia’s military-industrial complex still relies on imported chemicals, including some from the West

Catalytic hydrogen production is also dependent on imports at a level of 90%.

Zeolites form the basis for a wide range of catalysts. According to the Russian Academy of Sciences, only Y-type and ZSM-5 zeolites are produced in Russia, while other types, which are required in amounts measuring in the hundreds of tons, are imported.

“Another problem is that the petrochemical industry requires a much greater variety of catalysts — over a hundred types. However, demand for each individual catalyst is much smaller than in oil refining, ranging within 50–100 metric tons nationwide. Setting up production for such small volumes is unprofitable for enterprises,” Alexander Noskov, deputy director of the G. K. Boreskov Institute of Catalysis, explained at the start of the full-scale war. “This was attempted in the USSR, when the industry was geared toward self-sufficiency, but after transitioning to a market economy, Russia began sourcing most catalysts for the petrochemical industry abroad.”

Until 2022, Russia's leading brands of imported catalysts were Axens, UPO, and Criterion. Specialists from the Russian Academy of Sciences note that Russia is fully dependent on imports for catalysts used in the hydrotreatment of petroleum products (the removal of sulfur-containing impurities) and for the catalysts needed to produce Arctic-grade diesel fuel.

According to Noskov, “Another vulnerable area in oil refining is catalysts for producing winter and Arctic fuels (with an annual consumption of 200–250 metric tons). These technologies rely on imported catalysts, and their rapid replacement is hardly possible.”

Dependence on imports persists for petrochemical processes such as alkene oligomerization, hydrodearomatization, and hydrodeparaffinization, as well as for producing feedstock for most polymers (except rubber and polyvinyl chloride).

Western equipment for gas chemistry

The situation in gas-chemical production is no better: until very recently, methanol plants producing methanol from methane preferred to use Danish Haldor Topsoe catalysts.

In 2021, the ammonia production lines (and therefore urea and nitric acid production as well) for TogliattiAzot were to be built by the Swiss firm Casale. Those lines were not launched until 2023. Ammonia production capacity was built jointly with KuibyshevAzot by MET Development, a subsidiary of the Italian company Maire Tecnimont, with licensing provided by Stamicarbon. Ammonia and its derivatives are used everywhere, but most notably for the Russian case, it is needed for the production of nitric acid, which is required for almost all explosives.

Catalyst production: capacity fell short

Experts note that “the most acute import substitution challenge for Russia’s oil-refining industry is hydrotreating and hydrocracking catalysts.” State-controlled oil giant Rosneft launched Russia's first hydrocracking catalyst production line in 2022 in Sterlitamak, where the plant’s start-up was reported with fanfare. The line’s purpose is to partially replace imported hydrocracking catalysts.

Since 2019, the Gazpromneft Catalytic Systems plant has been under construction in Omsk. Its planned capacity totals 21,000 metric tons of catalysts per year (4,000 metric tons of hydrotreating catalysts, 15,000 metric tons of catalytic cracking catalysts, and 2,000 metric tons of other varieties).

However, these volumes are barely sufficient to meet domestic demand. As Noskov noted, Russia consumes 3,500–4,000 metric tons of hydrotreating catalysts and 1,000–1,500 metric tons of hydrocracking catalysts per year.

Iranian assistance

As a result, Russia has been forced to turn to friendly countries, such as Iran. From Mar. 21, 2023, to Mar. 20, 2024, Tehran exported 500 metric tons of raw materials for petrochemical catalysts, according to Morteza Shahmirzaei, CEO of Iran’s National Petrochemical Company. Shahmirzaei stated that collaboration with Russia in the field of catalysis had begun as early as March–April 2022.

The Insider analyzed Russian customs data and found the Emirati company Prolab Industries F.Z.C. listed as the manufacturer and exporter of these types of catalysts to Russia. Meanwhile, the suppliers included the intermediary firms Odyssey Shipping Services (UAE), Supplylink (Kyrgyzstan), and Bms Sondaj Makinalari Sanayi Ve Dis Ticaret Ltd Sti (Turkey). Notably, the UAE’s Prolab Industries F.Z.C. does not run any production facilities, potentially indicating a re-export of components from Iran.

According to The Insider’s calculations, in the Persian year 1402 (starting March 2023), Prolab Industries delivered 420 metric tons of substances for producing refining catalysts to Avangard Trans Group LLC and Khimtekh LLC. Customs documents mistakenly list the weight in kilograms instead of tons, but the correct weight can be inferred from the batch price (the market price of lanthanum oxide is around $3,000 per ton, while the imported batches cost a total of $600,000–$800,000). Avangard Trans Group describes itself as a company supplying Gazprom’s oil and gas transport enterprises with spare parts and components.

The chemical was supplied under the trade name “Activator PIXO-QE5” (contains lanthanides). Deliveries have continued into the Persian years 1403–1404 (i.e., from the end of March 2024 to the present).

Compounds of the rare-earth metals lanthanum and cerium, as noted by Iranian petrochemist Sasan Talebnejad, are widely used in catalytic cracking.

The Insider has sent inquiries to Avangard Trans Group and Prolab Industries F.Z.C.

Polymers: no catalysts for polypropylene and polyethylene

In addition to their necessity in fuel production, catalysts are also critical for producing polymers with specific properties.

In 2007, Plastics Magazine noted that “Russia's level of petrochemical development is catastrophically low: the country accounts for only 1.3% of hydrocarbon feedstock processed for polyolefin production. For every ton of oil and gas consumed in Russia, only 3 kg of polyolefins are produced, compared with 15 kg in the U.S., 21 kg in Western Europe, 29 kg in China, and 32 kg in Brazil.”

Since then, the situation has improved little. For example, Lukoil previously purchased catalysts from Texas-based Lummus Technology for the production of urea, polyethylene, and polypropylene.

“Russia's tightest bottlenecks are polyethylene and polypropylene production, which currently totals about 4–5 million metric tons per year. In these processes, the catalyst is single-use and present in millionths within the product itself. For these 4–5 million tons, approximately 100–120 tons of catalyst are needed. If supplies of the required catalyst stop, production will halt within a month. The tire and paint industries could also face catalyst shortages,” Noskov explains.