BankWatch.com: No public financing for Shell’s Sakhalin II project!:
Posted 29 November 2005
It is very
likely that the EBRD is going to take an important decision about the
Sakhalin II project in the next few days - therefore we would like to
ask you for urgent help.
The Shell-led Sakhalin Energy company is seeking
up to USD 300 million from the European Bank for Reconstruction and
Development (EBRD) for the highly controversial Sakhalin II project in
the Russian Far East, the largest oil and gas project in the world.
Despite a wide range of areas where the Sakhalin
II project violates the EBRDs lending guidelines, against all the odds
it seems that any day now the EBRD will decide that the project is in a
suitable state for funding.
An independent panel of experts convened by Shell found in February 2005
that the off-shore platforms and undersea pipelines of Sakhalin II
threaten the last 100 critically endangered Western Gray Whales with
extinction, and that the loss of one additional adult female per year
“would be sufficient to drive the population towards extinction with
At the same time, Sakhalin II currently has no oil spill response plan
proven to work in the dangerous sea ice conditions common in the waters
off Sakhalin Island. The island’s ecology and economy is thus threatened
by the oil company’s negligence.
The project’s eight hundred kilometres of onshore pipelines slice
through wild salmon rivers despite the fact that these salmon are a
primary source of income for one third of the island’s residents and are
crucial to indigenous peoples’ culture and livelihoods. The project’s
dumping of dredged wastes into the fisheries-rich Aniva Bay makes these
community impacts even worse.
Sakhalin II is based on an inequitable Production Sharing Agreement
between the Russian Government and the oil company that will result in
far less revenues for the Russian side than originally promised. This,
combined with the recently announced USD 10 billion cost overrun, will
result in little - if any - economic benefit for Russia or Sakhalin
Tell your country’s representative on the EBRD board of directors not to
support EBRD financing for the Sakhalin II project!
You can do so by signing and immediately sending
the text below to your representative at the EBRD.
Your constituency is being asked to support the Sakhalin II oil and gas
project in the Russian Far East through the European Bank for
Reconstruction and Development (EBRD). The EBRD's management seeks your
acceptance of the project’s Environmental Impact Assessment (EIA)
despite the fact that over the last three years the bank has found
worsening examples that Sakhalin II does not comply with the EBRD's
environmental and social policies:
Independent experts have concluded that the project
threatens the critically endangered Western Gray Whale with
No oil spill response plan is in place that is proven to
work in dangerous sea ice conditions, threatening the
island’s ecology and economy
Sakhalin II pipeline construction is slashing
across over100 wild salmon rivers and spawning beds; damaging the
habitat of keystone species that provide primary income for 1/3 of
island residents, and that are crucial to indigenous people’s culture
Dredging wastes are being dumped into Aniva Bay
and the illegal construction of a pier has taken place despite the
importance of this fisheries-rich water to the island’s economy
- A USD10 billion cost overrun, an inequitable revenue
sharing scheme, and long-term environmental damage will leave
the island worse off than before.
Acceptance of the Sakhalin II EIA will send a
dangerous message that EBRD is willing to ignore its own policies and to
disregard spiraling project risks.
We urge you to reject the Sakhalin II EIA as
“unfit for purpose.”
Environment Watch´s website on Sakhalin II project
Pacific Environment´s website on Sakhalin II project
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