indigenous peoples of the north, siberia and far east

Indigenous Peoples of the North, Siberia and Far East:

Russian case of Free Prior Informed Consent

Washington 07 October 2010

Rodion Sulyandziga

[email protected]

Indigenous Peoples Indigenous Peoples of the North, Siberia and Far Eastof the North, Siberia and Far East

INDIGENOUS PEOPLES OF THE NORTH, SIBERIA AND FAR EAST

• 40 PEOPLES IN 27 REGIONS (REPUBLICS, KRAY, OBLAST AND AUTONOMOUS OKRUGS)• RECOGNIZED BY THE RF CONSTITUTION • TOTAL POPULATION – about 300.000 • SMALL NUMBERED/MINORITY ON TRADITIONAL LANDS (7 PEOPLES – LESS 1000, 12 – LESS 2000)• TRADITIONAL LIFE-STYLE AND SUBSISTENCE ECONOMY (DOMESTIC REINDEER HERDING, HUNTING, FISNING, WILD PLANTS GATHERING) •RAIPON IS UMBRELLA ORGANIZATION

Key Challenges Dependence on nature that provide cultural and Dependence on nature that provide cultural and

ethnical developmentethnical development Most vulnerable and marginalized population living in Most vulnerable and marginalized population living in

remote areas spread over Arctic, Siberia and Far East remote areas spread over Arctic, Siberia and Far East with pure infrastructure with pure infrastructure

Industrial development and impact on traditional Industrial development and impact on traditional activity and life-styleactivity and life-style

Minority on traditional lands and assimilation processMinority on traditional lands and assimilation process Lack of efficient laws and implementation mechanismsLack of efficient laws and implementation mechanisms

Arctic Strategies as new fashionFinland Norway EU Denmar

k Canada USA Russia

Title Finland's Arctic Research Strategy. 1998.

The Norwegian Govern-ment’s High North Strategy. 2006.

European Union and the Arctic. (СОМ 2008).

The Arctic at a Time of Transition: Proposed Strategies for Activities in the Arctic Region. (in Danish). Denmark. 2008.

An Integrated Arctic Strategy: Canada. 2008.

Arctic Region Policy US. 2009.

Development Strategy of Russian Arctic zone until 2020

2010.

# pages 17 76 12 43 25 8 250+ (DRAFT)

New common approaches Sustainable resource use, not conservation Adaptation socio-economic systems to climate

change International cooperation via Arctic Council Voice of the aboriginal people in the decision-

making process on the Arctic economic and social development

Multi-level governance for Arctic sustainable development in the conditions of global uncertainty

Peculiarities of the Russian Arctic

The most powerful industrial layer The biggest resource sector The largest share of urban population The strongest paradoxes

POLITICAL AND ECONOMICAL PARADOXES

BEING THE LARGEST ARCTIC ZONE – LACK OF ARCTIC LAWS AND FEDERAL AGENCYBEING THE LARGEST ARCTIC ZONE – LACK OF ARCTIC LAWS AND FEDERAL AGENCY

INNOVATION AND MODERNIZATION - RUSSIAN BUDGET STIIL BASICALLY DEPENDS ON INNOVATION AND MODERNIZATION - RUSSIAN BUDGET STIIL BASICALLY DEPENDS ON NATURAL RESOURCES EXPLOTATIONNATURAL RESOURCES EXPLOTATION

STATE OWNED MONOPOLY VS PRIVATE BUSINESS AND TNCSTATE OWNED MONOPOLY VS PRIVATE BUSINESS AND TNC

GAP INCREASINGGAP INCREASING: : RICH RICH - - POOR POOR

FEDERATION HORIZONTAL RELATIONS VS VERTICAL POWER CENTRALIZATION FEDERATION HORIZONTAL RELATIONS VS VERTICAL POWER CENTRALIZATION

GOOD LAWS VS LACK OF EFFICIENT MECHANISM GOOD LAWS VS LACK OF EFFICIENT MECHANISM

REGIONS’ ECONOMIC DEVELOPMENT ARE DIFFERENTREGIONS’ ECONOMIC DEVELOPMENT ARE DIFFERENT

ENVIRONMENT IMPACT ASSESSMENT DOES NOT PLAY KEY ROLE ANY LONGER

LACK OF LEGAL FRAMEWORK ON BUSINESS AND IP REGULATION

Hot Spot Map Arctic, Siberia and Far East

70 conflict ongoing or planned project (oil and gas, hydro, mining, forest)

New challenge: giant dams planning (Evenkia,

Yakutia)

WB POLICY ON INDIGENOUS PEOPLES 4.10

Free, Prior and Informed Consultation

• culturally appropriate• gender and inter-generational inclusive • conducted in good faith• voluntary, free of interference and non-manipulative

RESULTED IN

• BROAD COMMUNITY SUPPORT

IFC Role in Russia

Private business loan

146 projects - 2,84 billion (2007) Russia - # 1 in global portfolio

IFC Safeguards on Indigenous Peoples

Performance Standards # 7 and some others Consistent with WB Indigenous Peoples

Policy but with focus on private sector Key areas of focus:

Avoidance of adverse impacts Disclosure, consultation and informed participation Development opportunities Requirement for broad community support

IFC investments in oil, gas and mining production in Russia

Year Approved Project Name Product Region

2007 Aricom (CAT: A)

Kuranakh deposit

Titanium Amurskaya oblast

2005 Novatek (YNG) Gas Yamalo-Nenets Autonomous Okrug

2005 Peter Hambro

(Pokroskiy Rudnik)

Gold Amurskaya oblast

2005 Sual (OAO Bauxite Timana) Bauxite Komi Republic

2000 Bema Gold - Julietta

(Omsukchansk MGC)

Gold Magadan oblast

OAO Novatek (YNG) OAO Novatek (Yurkharovneftegaz) IFC $35m to finance project for Yurkharovskoye gas

field Development benefits include:

independent gas producer, taxes to Federal & local governments, employment & local community benefits (including for Indigenous People)

Environmental and Social aspects: Indigenous Peoples Development Plan (IPDP) Meet IFC E&S requirements for all projects from 2003 Employment of Corporate Environmental & Social Coordinator

and Advisor on IP

ARICOM – 2007 Category A Free prior informed consultations vs single

meeting in a village Broad community support? Level of consultations and negotiation? Low scale of potential adverse impacts? Information disclosure?

EBRD

1991 529 projects - 10,75 billion $ (2007) Russia - 38% investment (2006) 2010 – planned 4 billion EU

PR Indigenous Peoples - Principles

Partners in the transition process

Recognition for the Special Measures

Recognises principle in the UN Declaration on the rights of Indigenous Peoples for Prior Informed Consent

Recognition of Circumstances of IP in the Russian Federation

PR Indigenous Peoples - Objectives To ensure respect for dignity, human rights, aspirations and culture

of IP

To avoid adverse impacts

To enable IP to benefit from Bank supported projects

To support client to maintain relationships with IP To foster good faith negotiation and informed participation To respect and preserve the culture of IP

Irkutsk Oil case 2008 To meet EBRD new IP requirements From broad negotiations to free prior

informed consent from IP Monitoring and participation

IFC and EBRD Policies Review Process of consultation with civil society

and IP (quite different) EBRD arranged 4 consultation meetings

with IP (Murmansk, Kamchatka, Irkutsk, Moscow, 2007-2008)

IFC (1 in Moscow, 2010)

INDIGENOUS PEOPLES AND INTERNATIONAL STANDARDS

THE UN PERMANENT FORUM ON INDIGENOUS ISSUES

THE UN DECLARATION ON INDIGENOUS PEOPLES RIGHTS

THE ILO CONVENTION 169

THE WORLD BANK POLICY

UNDP, UNEP, UNESCO, WIPO, CBD

Equator Principles, Conduct Code, UN Special Reporter

Suggested Indicators to measureFree Prior Informed ConsentNo manipulation

Decision making prior to :

Investments

Land acquisition

Development plans in place

Information to be provided:

Openly, appropriate language

Include impacts, proposed benefits sharing & legal arrangements

Form may vary for different communities

No duress Legitimate chosen representatives or organizations

Inclusion of gender, youth perspective + input from most marginalised groups

Business Case for Requiring FPIC Increasing number of companies recognise that

‘regulatory licence to operate’ insufficient for sustainable operations.

By obtaining a community’s full consent and approval to go ahead, they de facto receive a social licence to operate

Reduces risk of incurring losses due to delays, conflict and protests which damage a company’s reputation.

New vision and approach

Benefit sharingMinimize

adverse impact Risks and opportunities

balance

Dialogue Consultation

Regulated expectations

Company policy towards IP

Business interest National legislationInternational law

Best practices

GAPS

International law and standards vs national legislation system

Federal laws on IP have declarative manner lacking of implementation mechanism and make conflict with some other federal laws like Land Code

Federal power has not legal framework on IP and companies regulations

Regional authority and companies are waiting decisions from Moscow

Lack of civil practices of regulations between mineral users and communities

SUMMARY

Large scale industrial projects in all Siberian and Far Eastern regions related to new natural resources development aiming to strengthen Russia’s economy and its energy power

Large scale unprecedented conqueror of traditional lands and cutting down pastures, sacred sites, hunting and fishing spots that make a great pressure and impact on indigenous peoples livelihood

Increased role of International Financial Institutions

LAND AND NATURAL RESOURCES

GOVERNMENT

BUSINESSBANKS

INDIGENOUSPEOPLES

AND LOCALCOMMUNITIES

CONFLICT OF INTERESTSOR

NEGOTIATION TOOL AND DEVELOPMENT

CONCLUSIONS AND RECOMMENDATIONS CONCLUSIONS AND RECOMMENDATIONS FOR IFCFOR IFC

• In Russian case of cult of force but not cult of law and under conditions of strong administrative pressure Consultation or Broad Community Support used to have declarative and manipulation feature

• FPIC leads to obligation of following rights and duties of parties• FPIC is not equivalent to VETO right but on contrary stimulates the negotiation process, trust, compromise and mutual benefit development• FPIC fully and adequate meets implementation of collective rights of IP on decision making towards their development

• FPIC is fundamental basis of justice and economic benefit sharing but first of all a contribution to human and social development of communities and territory at whole• FPIC encourages development of state-private partnership with IP and sustainable development of the region at whole, искореняю психологию временщика

•BRING INTERNATIONAL STANDARDS AND BEST PRACTICES TO RUSSIA

•ARRANGE ANNUAL CONSULTATIONS WITH RAIPON, COMPANIES MANAGEMENT AND OFFICIALS TO MONITOR IFC SUPPORTED PROJECTS

What kind of society we want to see left behind when the industry leave. . .

SUNRISE OR SUNSET

THANKS FOR YOUR ATTENTION

WWW.RAIPON.INFO

RUSSIAN ASSOCIATION OF INDIGENOUS PEOPLES OF THE NORTH