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shell outrages sakhalin's fishermen

Shell, the EBRD and JBIC plan to press on with the construction of a $12 billion gas facility off Russia’s Far East coast, in spite of a recent independent scientific panel calling for the company to suspend construction on Sakhalin II, until completion of further studies. The International Scientific Review Panel (ISRP), convened by the World Conservation Union, was also critical of Shell’s lack of necessary documentation and data related to key aspects of its oil and gas development. Shell’s plans to lay sub-sea pipelines carrying oil and gas from platforms off Sakhalin Island may affect feeding grounds, and noise and disruption from the development may kill the remaining whales

To review the Panel’s report, see: www.iucn.org/themes/business/Docs/ISRP_Report_with_covers_low_res.pdf

The Sakhalin Energy Company has prohibited salmon fishing in waters bordering the construction site of its liquid natural gas plant (LNG) in Sakhalin Island 's Aniva Bay. The decision led to local fishermen blocking the factory road with cars loaded with fishing nets. The protest lasted for an hour, causing a kilometre-long traffic jam. Representatives of Sakhalin Energy Company (which comprises Shell, Mitsui and Mitsubishi) and their subcontractors, CTSD Limited - the LNG plant construction workers - failed to emerge to meet the striking fishermen.

In response FoEI affiliate CEE Bankwatch has appealed to the European Bank for Reconstruction and Development (EBRD) to investigate how the controversial Sakhalin 2 oil and gas project is impacting on Sakhalin 's fishing industry. The EBRD is currently considering financing the second phase of Sakhalin 2 in what is the third largest Project Finance deal ever undertaken, and by far the largest undertaken in the oil and gas sector.

"On several occasions we have raised concerns about the potential social impacts of the project with the investors," said Petr Hlobil, Campaigns Coordinator of CEE Bankwatch Network. "Unfortunately, the fears that the plant would destroy the livelihoods of local people are becoming a reality."

news april 2006: dutch bank pressured not to finance sakhalin project
Dutch Banking giant ABN AMRO was under pressure at its annual general meeting of shareholders on April 27th as environmental organizations urged it not to finance a controversial energy project in Russia. The Sakhalin-II project in Russia is one of the biggest oil and gas projects worldwide, and the environmental organizations claim that it violates social and environmental guidelines known as the 'Equator Principles' for financing major projects.

news january 2006: protestors urge ebrd to reject financing for sakhalin ii
In January, more than 300 local Sakhalin people protested peacefully in front of the main entrance to the massive Sakhalin II LNG plant construction site against the widespread damage that the Sakhalin Energy Investment Company (SEIC), a consortium lead by Shell, is inflicting on Sakhalin's environment, social infrastructure and fishing economy. The protestors were joined by Sakhalin Regional Governor Ivan Malakhov, who supports the local people's demands for a recalculation of damage to fish stocks caused by the project, for the establishment of a sanitary protection zone extending to 3.5 km instead of the current 1 km, and for the EBRD not to finance the Sakhalin II project.
Contact: Dmitry Lisitsyn, Sakhalin Watch, or www.sakhalin.environment.ru

news december 2005: ebrd hesitates
Sakhalin Energy is seeking up to USD five billion in public financing for Sakhalin II from the European Bank for Reconstruction and Development (EBRD) and the export credit agencies of the US, UK and Japan. The EBRD last week further delayed a key ‘fit for purpose’ decision on the project until the end of the year.

Andrey Kurbatov, of Sakhalin Environment Watch, commented: “Under Russian law such work as Sakhalin Energy has been carrying out needs to strictly conform with what was laid down when it underwent a State Environmental Impact Review. However, Sakhalin Energy has allowed substantial deviations from the project documentation to occur with the LNG jetty construction. Our case maintains that so far damage to fish stocks far exceeds so-called permissable damage, that there has been an increase in the amount of dredged material, and that the dredging work itself is being carried out differently from how it was specified in the project documents.”

Dmitry Lisitsyn, the president of Sakhalin Environment Watch and leading the international Sakhalin 2 campaign, said: “This decision gives us great confidence that Sakhalin citizens can stand up to the oil majors and protect the natural riches not only in Aniva Bay but also throughout Sakhalin. This is just one of many instances in the Sakhalin II project where Sakhalin Energy’s project implementation has been appalling. Will they ever learn that such things as Russian legislation, the lending policies of major international banks and the livelihoods of Sakhalin islanders are not there to be wilfully abused? The EBRD’s environmental policy follows national legislation and in our view this is another case where Sakhalin Energy violates it.”

news june 2005: sakhalin protests in media and at shell agm
Eight international civil society groups placed a full page ad in the Financial Times in June urging Credit Suisse First Boston to uphold its sustainability commitments and sever its relationship as financial advisor to the controversial Sakhalin II project. Sakhalin II, a US$12 billion Shell-led operation on Russia 's Pacific Coast , is the single largest oil and gas project ever undertaken. The ad coincided with renewed demonstrations and blockades by indigenous communities on Sakhalin Island and a week of solidarity events and protests in New York , London and Moscow . Shell's AGM in London was the site of resistance to the project as well as Credit Suisse First Boston's Russian offices in Moscow . The ad outlined the direct violations of the project to the Equator Principles, which were launched in June 2003 and have now been signed by 31 private financial institutions in order “to promote responsible environmental stewardship and socially responsible development.”
More info: Celia Alario, Rainforest Action Network,

news april 2005 : sakhalin likely to receive big money
International campaigners expressed anger and dismay following Russian and Japanese media reports on April 27th that the Japan Bank for International Cooperation reportedly agreed on a US$4 billion credit line for the Sakhalin II oil and gas project in the Russian Far East. Environmental groups that have been monitoring the implementation of the highly controversial US$12 billion project warned that if confirmed, such a premature move from the Japanese public bank would breach its commitments to "ensure due environmental and social consideration for the project".
Contact: Petr Hlobil CEE Bankwatch Network,

news 25-02-05: The Japan Bank for International Coorperation, potential lender of the Sakhalin II phase 2 project, is holding a forum to collect concerns on the project and ask Sakhalin Energy (Shell, Mitsui, Mitsubishi) to respond. Local Hokkaido citizens and fishermen have raised major concerns regarding an oil spill. Many wildlife species experts say the company's Environment Impact Assessment is inadequate. The project threatens endangered species including the white tailed sea eagle, the spotted greenshank, the westen grey whale and Steller's sea lion. JBIC is urged not to finance the project unless it complies with JBIC's environmental and social guidelines.
More information: FoE Japan’s Shoko Murakami

For more on the Sakhalin 2 project visit www.sakhalin.environment.ru/en/

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