Accounting policy

Contingent liabilities are not recognized in the consolidated financial statements, except if they arise from a business combination. They are disclosed unless the possibility of an outflow of economic benefits is remote.

In € million

 

2016

 

2015

Liabilities and commitments of third parties guaranteed by the Company

 

792

 

881

Environmental contingent liabilities

 

307

 

313

Litigation and other major commitments

 

16

 

27

The liabilities and commitments of third parties guaranteed by the Company relate mainly to guarantees given in the framework of:

  • RusVinyl, the joint venture with SIBUR for the construction and operation of a PVC plant in Russia. A guarantee of € 152 million at December 31, 2016 (€ 292 million at the end of 2015) has been provided on a several basis by each sponsor, SolVin/Solvay and Sibur, for the benefit of the lenders and which corresponds for each to 50% of the amount in principal of RusVinyl project finance plus interests and costs;
  • VAT payment (€ 295 million at December 31, 2016, € 318 million at December 31, 2015).

Within the framework of the annual review of contingent liabilities, environmental contingent liabilities totaling € 307 million have been identified at December 31, 2016 (€ 313 million at December 31, 2015).