After extended period of negotiations JSC Kuibyshevazot and Togliattikauchuk LLC signed an agreement to supply the nitrogen to the latter for production process purposes. The parties managed to concord on the nitrogen price.

Togliattikauchuk uses nitrogen as an inactive gas. The company inactive gas requirements grew as the company production output increased. Purchasing extra gas volumes from Kuibyshevazot reduced the production cost efficiency since the supplier has increased the nitrogen price several times over the last two years.

Togliattikauchuk and Sibur management even considered a business plan to build its own nitrogen installation that would satisfy all in-house requirements. But setting up the facility would have required 130 million rubles of investments.

On the other hand losing one of its largest consumers (JSC AvtoVAZ is the major nitrogen consumer) also became uneconomic for Kuibyshevazot since the gas production requires full utilization whatever demand fluctuations are, the unclaimed product would have to be just blew off. That also jeopardized the production profit margin.

Mutual economic interests prompted the companies' management to start negotiating the acceptable nitrogen price. The negotiations resulted in a 10 years contract that strictly ties the product price to the inflation and energy carriers' costs fluctuations.