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Sakhalin II and BTC driving increased prostitution, human trafficking and HIV/AIDS, new report finds

A new report "Boom time blues: Big oil's gender impacts in Azerbaijan, Georgia, and Sakhalin" (published by CEE Bankwatch and Gender Action , documents the harrowing rise of prostitution, human trafficking, HIV/AIDS and violence against women in communities affected by Shell's Sakhalin II and BP's Baku-Tbilisi-Ceyhan (BTC) pipeline projects.

Based on field research with local people conducted by CEE Bankwatch Network and Gender Action in April this year, "Boom time blues: Big oil's gender impacts in Azerbaijan, Georgia, and Sakhalin" [1] reveals the increased burden and poverty for local communities and women as a result of the inflow of predominantly foreign male workers as well as the environmental degradation, land loss and damaged communal infrastructure that Shell's and BP's mega-projects have delivered.

The report argues that the involvement of the European Bank for Reconstruction and Development (EBRD) in the two projects so far has failed to provide suitable social safety nets for vulnerable members of the community, which the EBRD's current environmental policy regards as necessary for achieving progress towards sustainable development.

Along with the International Finance Corporation (IFC), the EBRD has backed the BTC project with a USD 250 million public loan and is reportedly on the brink of making a final funding decision on the highly controversial Sakhalin II Phase 2 project.

According to Fidanka Bacheva-McGrath of CEE Bankwatch Network, who conducted research for the report on Sakhalin Island, there is strong discontent on Sakhalin Island over Shell's behaviour towards the local environment and the harsh effects of the project on Sakhalin's social fabric."The report has examples from the BTC project of grave gender and social impacts that once the public banks are in, they provide very little help to communities affected by these big oil projects. We hope that the public banks' mistake with the BTC project will not be repeated and that Shell's persistent lack of respect for international standards and local communities will not be sanctioned by millions of dollars of public money from the EBRD."

In 2006 the EBRD is preparing to revise its environmental policy which fails to properly cover social issues. Currently the EBRD policy does not have specific safeguards for vulnerable groups, and CEE Bankwatch Network and Gender Action are calling for the EBRD to introduce much more detailed policies and safeguards that will require project sponsors to properly identify and address social and gender issues during a project's design, construction and operation period.

Elaine Zuckerman, of Gender Action, wants immediate action."Both the EBRD and the IFC have turned a blind eye to the increased prostitution, human trafficking and HIV/AIDS that the BTC and Sakhalin II pipeline projects generate. Lacking gender policies, both institutions are ill-equipped to identify and address such tragic social outcomes of their investments. It is time for the EBRD and IFC to develop and implement binding gender safeguard policies."

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