The VNKhK project is designed to crease the largest oil refining and petrochemical complex in the Far Eastern Federal District. VNKhK will become the core of the petrochemical cluster, which will contribute to the socio-economic development of the region. VNKhK will also ensure the most efficient use of the market situation in the Asia-Pacific region and allow to export the end products with a high added value. The project is supported by the Russian President V.V. Putin (Order No.P-2579 dated December 29, 2016), by the Chairman of the Russian Government D.A. Medvedev (Order No. DM-P9-705r dated January 31, 2014), as well as by regional authorities.

In 2016, the work on the VNKhK project was performed in accordance with the decisions adopted by the Rosneft Board of Directors on the project implementation and the project "road map" approved by the Russian Government Decree No. 2602-r dated December 17, 2015. In 2016, the Company completed processing the results of engineering surveys and the project documentation for the construction of VNKhK facilities, including those for the Stage 1 and Stage 2 production facilities of the complex, off-plant facilities and major infrastructure facilities, and submitted the documents for approval to the state expert authorities.

At present, the Company is preparing for the construction of the first and second project stage, namely:

• stage 1- oil refining unit, annual capacity 12 million ton of oil;
• stage 2 – petrochemicals unit, annual capacity 3.4 million ton of raw materials;

The construction of VNKhK has a number of advantages if compared to many Russian and foreign analog facilities:

• own raw materials sufficient to ensure the maximum production capacity;
• location in the immediate vicinity of the ESPO and access to the seaports;
• proximity to the largest product markets - APR;
• lower unit costs in the production of petrochemical products.