Indigenous Peoples of the North, Siberia and Far East: Russian case of Free Prior Informed Consent Washington 07 October 2010 Rodion Sulyandziga

Indigenous Peoples of 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 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 ethnical development Dependence on nature that provide cultural and ethnical development Most vulnerable and marginalized population living in remote areas spread over Arctic, Siberia and Far East with pure infrastructure Most vulnerable and marginalized population living in remote areas spread over Arctic, Siberia and Far East with pure infrastructure Industrial development and impact on traditional activity and life-style Industrial development and impact on traditional activity and life-style Minority on traditional lands and assimilation process Minority on traditional lands and assimilation process Lack of efficient laws and implementation mechanisms Lack of efficient laws and implementation mechanisms

Arctic Strategies as new fashion FinlandNorwayEUDenmar k CanadaUSARussia TitleFinland's Arctic Research Strategy The Norwegia n Govern- ment’s High North Strategy European Union and the Arctic. (СОМ 2008). The Arctic at a Time of Transitio n: Propose d Strategie s for Activities in the Arctic Region. (in Danish). Denmark An Integrate d Arctic Strategy: Canada Arctic Region Policy US Developme nt Strategy of Russian Arctic zone until # pages (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 AGENCY BEING THE LARGEST ARCTIC ZONE – LACK OF ARCTIC LAWS AND FEDERAL AGENCY INNOVATION AND MODERNIZATION - RUSSIAN BUDGET STIIL BASICALLY DEPENDS ON NATURAL RESOURCES EXPLOTATION INNOVATION AND MODERNIZATION - RUSSIAN BUDGET STIIL BASICALLY DEPENDS ON NATURAL RESOURCES EXPLOTATION STATE OWNED MONOPOLY VS PRIVATE BUSINESS AND TNC STATE OWNED MONOPOLY VS PRIVATE BUSINESS AND TNC GAP INCREASING: RICH - POOR GAP INCREASING: RICH - 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 DIFFERENT REGIONS’ 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 NameProductRegion 2007Aricom (CAT: A) Kuranakh deposit TitaniumAmurskaya oblast 2005Novatek (YNG)GasYamalo-Nenets Autonomous Okrug 2005Peter Hambro (Pokroskiy Rudnik) GoldAmurskaya oblast 2005Sual (OAO Bauxite Timana)BauxiteKomi Republic 2000Bema Gold - Julietta (Omsukchansk MGC) GoldMagadan 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 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, ) 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 measure FreePriorInformedConsent No 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.

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 sharing Minimize adverse impact Risks and opportunities balance Dialogue Consultation Regulated expectations Company policy towards IP Business interest National legislation International 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 BUSINESS BANKS INDIGENOUS PEOPLES AND LOCAL COMMUNITIES CONFLICT OF INTERESTS OR NEGOTIATION TOOL AND DEVELOPMENT

CONCLUSIONS AND RECOMMENDATIONS FOR 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 RUSSIAN ASSOCIATION OF INDIGENOUS PEOPLES OF THE NORTH